Shanghai Plunge Drags World Markets

123jump.com Staff
29 Jul, 2009
New York City

Stocks in Shanghai plunged after investors worried of the government crackdown on new loans and housing bubble. The benchmark index has surged more than 75% in the last nine months. China Cosco dropped after it estimated a loss in the first half on weak container and dry bulk cargo.

[R]8:00 PM Hong Kong, 8:00 AM New York – Stocks in Shanghai plunged after investors worried of the government crackdown on new loans and housing bubble. The benchmark index has surged more than 75% in the last nine months.[/R]

Stocks in Shanghai plunged on the worries that the Chinese government may step in to curb the rising fund flows and prevent the asset bubble from growing any further.

The government stimulus plan and banks willingness to extend liquidity to corporations has catapulted benchmark index in Shanghai more than 75% in the last nine months.

Hang Seng index in Hong Kong decreased 489.04 or 2.37% to 20,135.50 and CSI 300 index in China lower 197.31 or 5.25% to 3,558.51.

Gainers & Losers

China Cosco decreased 8.4% to 17.54 yuan and dropped 6.7% to HK$10.82 after it estimated loss in the first half of the year on weak container and bulk cargo.

China State Construction Engineering priced its offering at 4.18 yuan and surged to close at 6.53 yuan, a rise of 56%.

BBMG surged 56% in Hong Kong after it completed offering to raise HK$5.95 billion.

Dalian Port Company decreased 3.7% to HK$3.36 after the operator of marine port and crude oil terminals estimated a fall in revenues and earnings.

Jiangxi Copper plunged 9% to 42.62 yuan and China Shenhua Energy Company declined 6.5% to 36.96 yuan.

Poly Real Estate Group plunged 8.7% to 26.56 yuan and China Vanke decreased 2.2% to 11.28 yuan.

PetroChina decreased 6% to 15.22 yuan and Sinopec Shanghai decreased 2.9% to 9.35 yuan.

Sichuan Expressway Company Limited plunged 10% to 8.83 yuan after recently it surged on the first day of its trading to close to 10 yuan.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 25.98 or 0.26% to 10,113.24, Hang Seng index in Hong Kong decreased 489.04 or 2.37% to 20,135.50 and CSI 300 index in China lower 197.31 or 5.25% to 3,558.51. ASX 200 index in Australia decreased 26.70 or 0.64% to 4,142.80. The FTSE Bursa KL Composite index in Malaysia closed lower 7.90 or 0.67% to 1,164.48.

The Kospi Index in South Korea decreased 1.71 or 0.11% to close at 1,524.32. SET index in Thailand closed lower 7.08 or 1.14% to 614.88 and JSE Index in Indonesia decreased 11.29 or 0.50% to 2,225.81. The Sensex index in India decreased 158.48 or 1.03% to 15,173.46.