China markets slip again despite 8.9pct growth figure for third quarter
China markets fell slightly on Thursday as a government official highlighted inflation as a potential problem. The falls came despite strong third quarter data, including an annual GDP growth of 8.9 percent, up from 7.9 percent in the second quarter.
The Shanghai Composite Index slid 0.6 percent to 3,051.412 points. The Hang Seng fell 0.5 percent to 22,210.52 points. The China Enterprises Index, representing large Hong Kong-listed mainland Chinese, stocks slid 0.32 percent to 12,959.93.
A spokesperson for the National Bureau of Statistics today said: "At present China faces no inflation problem, but China must pay close attention to inflation expectations." Deflation eased in September, with prices falling 0.8 percent on a year earlier compared with a steeper 1.2 percent drop in August.
China Securities Journal today reported that iron ore prices could rise 30 percent next year. Steel companies. Baoshan Iron & Steel Co., Ltd. (SHA:600019) dropped 1.1 percent. Angang Steel Company Limited (SHE:000898, HKG:0347) was down 1.7 percent in Shenzhen and 1.8 percent in Hong Kong. Chongqing Iron & Steel Co., Ltd. (SHA:601005, HKG:1053) fell 2.3 percent in Shanghai and 1 percent in Hong Kong. However Panzhihua New Steel & Vanadium Co., Ltd. (SHE:000629), which is famous for owning its own iron ore mine, rose 3.2 percent.
Telecoms extended yesterday's falls. China Mobile (HKG:0941), the world's largest mobile carrier, dropped another 1.2 percent. China Unicom (SHA:600050, HKG:0762), China's second-largest mobile-phone operator, fell 3.5 percent. China Telecom (HKG:0728), China's largest fixed-line phone company, dropped 3 percent.
Foshan Plastics Group Co., Ltd (SHE:000973) rose 9.9 percent after announcing it has expanded a project with Electric car and battery maker BYD Company Limited (HKG:1211). BYD was also up 0.9 percent, while mainland listed power cell makers also made large gains today. Jonjee Hi-Tech Ind.& Com. Hldg Co., Ltd (SHA:600872) rose to the 10 percent limit. Hunan Corun New Energy Co., Ltd. (SHA:600478) gained 4.5 percent. Shenzhen Desay Battery Tech Co., Ltd. (SHE:000049) was up 4.7 percent.
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