China markets down for fourth consecutive week
Chinese markets closed with a loss for the fourth consecutive week as concerns of weak bank lending and the impact of fundraising on the Shanghai market weighed on sentiment across all sectors.
The Hang Seng Index dropped 0.7 percent. The Shanghai Composite Index fell 2.9 percent. The China Enterprises Index, which represents top Hong Kong-listed mainland Chinese stocks, was down 1.2 percent
Steel producers led the losses. Baoshan Iron & Steel Co (SH:600019) fell 3.77 percent. Wuhan Iron and Steel Co (SH:600005) was down 6.42 percent. Liuzhou Iron & Steel (SH:601003) dropped 7.5 percent.
Banks also performed poorly. In Shanghai, Shanghai Pudong Development Bank (SH:6000) slid 5.8 percent and China Merchants Bank (SH:600036) fell 3.4 percent. Industrial & Commercial Bank of China (HK:1398, SH:601398), the nation's biggest lender, fell 1.49 percent in Shanghai and 0.8 in Hong Kong.
Bank of China (SH:601988, HK:2388) dropped 1.76 percent in Shanghai and 0.3 percent in Hong Kong, despite jumping 5.8 percent in Hong Kong on opening after saying it plans to slow credit growth in the second half.
Gas companies fell after natural gas prices slumped to their lowest prices in seven years yesterday, with the Chinese government reporting that gas storage areas where are nearing full due to low manufacturing output. Natural gas prices sank 6.7 cents to US$2.843 per 1,000 cubic feet.
In Hong Kong, CNPC (Hong Kong) Limited (HK:0135) dropped 2.5 percent, Zhengzhou Gas Company Limited (HK:3928) dropped 2.1 percent and China Gas Holdings Ltd.
( HK:0384) was down 1.4 percent.
On mainland exchanges ShaanXi Provincial Natural Gas Co., Ltd. (SZ:002267) dropped 2.4 percent and Shanghai DaZhong Public Utilities (SH:600635) dropped 4.1 percent.
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