Chinese shares keep sliding

June 12th, 2008 - 4:31 pm ICT by IANS  

Beijing, June 12 (Xinhua) Chinese shares continued to move downward Thursday, with the benchmark index slumping 2.21 percent to below-3,000 points, despite official report that the inflation rate was dropping. As the drop in the inflation largely fell within market expectation and was not supposed to change the overall policy, it did not stimulate the market much, said analysts.

China’s benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,957.53 points, down 66.71 points, or 2.21 percent, from the previous close.

The National Bureau of Statistics Thursday released the May figure of consumer price index (CPI), the main gauge of inflation, which was 7.7 percent up from the same period last year.

It marked the first significant drop of the inflation indicator since last year, compared with 8.5-percent in April and a 12-year high of 8.7 percent in February.

The Shenzhen Component Index on the Shenzhen Stock Exchange closed at 10,340.14 points, down 117.94 points, or 1.13 percent, from the previous close.

The weakness continued the trend starting from Chinese shares’ biggest single-day plunge in more than one year Tuesday, when the Shanghai Composite Index dived 7.73 percent to end at 3,072.33 points after the central bank announced its decision to tune up the reserve requirement ratio to 17.5 percent.

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