China markets plummet, Shanghai largest daily drop in nine months
China markets sank today, with Hong Kong falling for the first time in three days and mainland markets by the most in 9 months today.
The Shanghai Comprehensive Index fell 5.79 percent to 2870.74, the largest daily drop in nine months, the Shenzhen Composit Index retreated 6.65 percent to11668.80. The small and medium enterprises SME Comprehensive Index plunged 6.85 percent to 4139.80. Less than 50 stocks went up, while over 260 stocks fell to the 10 percent trading floor.
Hong Kong stocks fell the first time in three days. The Hang Seng Index lost 3.62 percent to 20,137.65. The China Enterprise Index, which tracks key mainland companies listed in Hong Kong, lost 4.24 percent to close at 11,395.01. Hong Kong's Growth Enterprise Board Index declined 2.39 percent to 630.80.
Taiwan's Taiex Index lost 1.95 percent to 6931.80.
Nonferrous metal shares dropped over 8 percent. Jiangxi Copper Co. (SH:600362; HK:0358), China's largest producer of the metal, declined 10 percent in Shanghai and 7.52 percent in Hong Kong. Yunnan Copper Co.(SZ:000878), the third largest, dropped to the 10 percent trading floor after posting a first-half loss. Aluminum Co.of China (SH:601600;HK:2600), China's biggest producer of the light metal, lost 10 percent in Shanghai and 6.48 percent in Hong Kong. Hunan Non-ferrous Metals Co. (HK:2626) dropped 9.40 percent.
Coal producers plunged on lower oil price. China Shenhua Energy Co.(SH:601088;HK:1088), the nation's largest coal miner, lost 5.97 percent in Shanghai and 6.43 percent in Hong Kong. Yanzhaou Coal Mining Co.(SH:600188;HK:1171) dropped 10 percent in Shanghai and 5.65 percent in Hong Kong.
Brokerage shares were were relatively strong on the IPO of Everbright Securities tomorrow. Guoyuan Securities (SZ:000728) rose 3.75 percent. Hongyuan Securities (SZ:000562) advanced 0.93 percent. CITIC Securities (SH:600030), China's largest stock broker, however, dropped 4.64 percent.
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