| « Asia's economic power triggers a capital flood into startups | Taiwan's export orders drop for second consecutive month » |
Market gives back morning gains as cautious investors take profits
Mainland stock markets tumbled in late afternoon trading Thursday as investors cashed in on gains from earlier in the day.
The Shanghai Composite Index fell 3.46 percent or 162.37 points to 4,527.78 points Thursday. The Shenzhen Component Index lost 3.80 percent or 619.87 points to close at 15,692.44 points.
The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen fell 3.56 percent or 173.61 points to 4,706.52 points.
A total of 1.55 trillion yuan ($249.71 billion) changed hands on the two bourses, up from the previous trading day's 1.49 trillion yuan.
News about the central government's decision to scrap the debt-to-loan ratio for banks sent heavily weighted financial stocks soaring during morning trading, pushing the Shanghai benchmark above the 4,700 point mark by midday.
However, in the afternoon session, banking heavyweights took a hit as cautious investors decided to take some profit, dragging down the Shanghai index.
Despite the good news about the debt-to-loan ratio, the banking sector still suffered losses, indicating weak investor sentiment, New Times Securities said in a note Thursday.
The regulatory approval of a new batch of IPOs may have also contributed to the fragile sentiment.
The China Securities Regulatory Commission said late Wednesday that it has approved 28 new IPOs, which media reports said would freeze more than 1.4 trillion yuan.
The coal and nonferrous metal sectors were among the worst performers Thursday. Gansu Jingyuan Coal Industry and Electricity Power Co, Shaanxi Coal Industry Co, Anhui Jingcheng Copper Share Co and Shenghe Resources Holding Co fell 9.46 percent, 9.04 percent, 9.45 percent and 9.20 percent, respectively.
ChiNext, the country's NASDAQ-style board for high-tech and emerging start-ups, slumped 5.23 percent or 177.02 points to close at 3,206.38 points.
dacare This entry was posted on June 26th, 2015 at 10:49:56 am by dacare and is filed under Investing in China.