CHINA / Chinadaily.com.cn Exclusive
China stocks fall on profit-taking
By Dong Zhixin (chinadaily.com.cn)
Updated: 2007-07-24 15:45
Investors monitor stock price movements at a brokerage firm in Wuhan,
Central China's Hubei Province on July 23, 2007. [newsphoto]
Chinese stocks fell in late trading on Tuesday, reversing two consecutive
days of sharp gains, as investors dumped shares when the benchmark index
neared a record high.
The Shanghai Composite Index opened today 0.59 percent higher at 4,238.32
and at one point climbed to 4,284.83, very close to the record high of
4,335 reached on May 29.
That prompted many investors into selling on fears of another major
correction. The market has been highly volatile and seen a series of
sharp falls since May 29 after the government tripled the stamp tax on
stock trading.
The index closed at 4,210.33, a decrease of 0.07 percent from Monday's
close, as compared to a 3.73 percent gain on Friday and a 3.81 percent
rise on Monday.
There is a lot of resistance to go beyond the 4,300 mark, analysts said.
They expect further consolidation by the market before it can hit new
highs.
The banks' performances were divided. Bank of Ningbo rose 2.65 percent to
close at 25.98 yuan per share, followed by a 2.48 percent increase in
shares of China Minsheng Banking Corporation to 14.04 yuan.
The Industrial and Commercial Bank of China dropped 1.04 percent to 5.69
yuan, while Bank of China fell 0.92 percent to 5.36 yuan.
The insurance sector continues to be weak. China Life, the country's top
life insurer, decreased 1.96 percent to 48.02 yuan, and Ping An Insurance
of China declined 1.13 percent to 82.52 yuan.
China Unicom also dragged down the Shanghai Index as it lost 1.73 percent
to 6.24 yuan. Shanghai Auto fell 0.95 percent to 21.88 yuan.
Trading volume in the Shanghai Stock Exchange shrank to 141.6 billion
yuan from 154.3 billion yuan on the previous session. Turnover in the
Shenzhen Stock Exchange expanded slightly, to 76.55 billion yuan,
compared to Monday's 76.46 billion yuan.
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