CPI jump drags down A shares

SHANGHAI: The stock market plunged 4.51 percent yesterday after the government announced a 6.5 percent jump in the consumer price index (CPI) for August.

The Shanghai Composite Index rose 0.7 percent in the morning. But the CPI announcement at 10 am triggered a sale stampede, amid heightened anticipation of further credit-tightening measures. The main index continued falling in the afternoon to close 241.32 points lower at 5113.97 - the biggest one-day drop in two months.

Turnover on the Shanghai bourse amounted to 170 billion yuan yesterday, with 799 of 903 stocks closing lower.