China stocks extend loss on slowing PMI

Updated: 2011-11-23 20:09

(Xinhua)

  Comments() Print Mail Large Medium  Small 分享按钮 0

BEIJING- Chinese stocks dropped for the second straight day on Wednesday, after the Hong Kong and Shanghai Banking Corporation (HSBC) reported that China's November manufacturing PMI would drop to a 32-month low of 48.

The benchmark Shanghai Composite Index dropped 17.56 points, or 0.73 percent, to close at 2,395.07.

The Shenzhen Component Index retreated 70.89 points, or 0.71 percent, to finish at 9,957.32.

Combined turnover shrank slightly to 101.27 billion yuan ($15.95 billion ) from 102.23 billion yuan on the previous trading day.

Losers outnumbered gainers by 710 to 214 in Shanghai, and 875 to 455 in Shenzhen.

The HSBC reported on Wednesday that China's manufacturing Purchasing Managers Index (PMI) for November would decline from October's 51 to 48, the lowest level in 32 months.

Qu Hongbin, chief economist for HSBC China, said the decline of the PMI indicated that the growth of industrial output may fall to 11 to 12 percent in the next few months.

Cement producers and coal miners led the decline, with the sub-indices for these sectors dropping 1.76 percent and 1.72 percent, respectively.

Anhui Conch Cement Co, a leading cement producer in China, dropped 1.97 percent to 16.9 yuan per share, while Tangshan Jidong Cement dropped 1.67 percent to 15.28 yuan.

China Shenhua Energy Co, the country's largest coal producer, retreated 1.84 percent to close at 25.58 yuan, and Yangquan Coal shed 2.16 percent to 18.99 yuan.