An
investor reads information at a securities exchange hall in southwest China's Chongqing
Municipality, June 10, 2008. The benchmark Shanghai Composite Index closed at 3,072.33,
down 7.73 percent, while the Shenzhen Component Index on
the Shenzhen Stock Exchange ended at 10,765.91 points, down 8.25
percent. (Xinhua Photo) Photo Gallery>>>
BEIJING, June 10 (Xinhua) -- Chinese
shares took their biggest single-day plunge in more than one year after the
three-day Dragon Boat Festival holiday as investors became nervous about the
impact of the country's latest move to tighten credit.
The benchmark Shanghai Composite Index, which covers
A and B shares, dived 7.73 percent to end at 3,072.33 points on Tuesday, the
biggest plunge since June 4, 2007, when the key index plummeted 8.26 percent.
The Shenzhen Component Index fell 8.25 percent, or
968.07 points, to 10,765.91 points.
Combined turnover on the two bourses totaled 89.30
billion yuan(12.76 billion U.S. dollars).
The increase in reserve requirement ratio, upcoming
China Construction's A-share debut and financial woes in neighboring Vietnam all
added pressure to the market, Greatwall Securities analyst Yan Hong told Xinhua
Tuesday.
The People's Bank of China (PBOC), the country's central bank, on Saturday ordered lenders to set aside more money for reserve, the fifth such move this year.
Investors read information at a stock trading hall in Shanghai, China, June 10, 2008. (Xinhua Photo) Photo Gallery>>>
The reserve-requirement ratio would be raised by 0.5
percentage point on June 15, and another 0.5 percentage point on June 25, which
would bring the ratio to a record high of 17.5 percent.
Shares of banks and property companies, industries
most likely to feel pressure from the increase, led the decline.
The Industrial and Commercial Bank of China (ICBC),
the country's largest lender, shed 8.35 percent to 5.38 yuan, while the Bank of
China (BOC), the country's second largest lender, lost7.87 percent to 4.33 yuan.
Vanke Group, the country's top real estate firm, slipped by the daily 10 percent
limit.
China State Construction Engrg. Corp. has got
regulatory approval to issue 12 billion A-shares, the country's largest initial
public offering (IPO) in 2008. It expected to raise more than 40 billion yuan.
The record high price of crude oil also affected
market sentiment, Yingda Securities analyst Li Daxiao said, with stocks of
airliners and oil producers suffering heavy losses.
Sinopec, Asia's top oil refiner, sank 8.39 percent
while PetroChina, the country's largest oil producer, lost 6.06 percent.
Airliners fell across the board with China Eastern Airlines and Hainan Airlines
dropping by the maximum limit of 10 percent.
BEIJING, June 7
(Xinhua) -- China's central bank on Saturday ordered lenders to set aside more
money as reserve, the fifth such move this year. It was the latest effort to
enhance liquidity management in the banking sector.
The reserve-requirement ratio would be raised by 0.5
percentage points on June 15, and another 0.5 percentage points on June 25, the
People's Bank of China (PBOC) said on its website. Full story
BEIJING, May 11 -- China's monetary authorities are
struggling to address conflicting policy goals, but inflation will remain the
top policy concern, the country's central bank governor said on Saturday.
While the United States and other countries are more
focused on fending off a recession, China's monetary policy must target
inflation over growth and employment, Zhou Xiaochuan, the People's Bank of China
governor, told a forum in Lujiazui, Shanghai's financial center. Full story
