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China stocks drop over profit-taking

2012-10-11 17:31 Xinhua     Web Editor: qindexing comment

Chinese stocks broke a two-day winning streak on Thursday, weighed down by profit-taking and weak performances in overseas markets.

The benchmark Shanghai Composite Index dropped 0.81 percent, or 17.07 points, to finish at 2,102.87.

The Shenzhen Component Index closed at 8,665.09, down 108.59 points, or 1.24 percent.

Combined turnover shrank to 121.49 billion yuan (19.17 billion U.S. dollars) on Thursday from 126.42 billion yuan the previous trading day.

Losers outnumbered gainers by 840 to 111 in Shanghai and by 1,352 to 169 in Shenzhen.

U.S. stocks extended losses on Wednesday as concerns over the global economic slowdown and sluggish corporate earnings continued to weigh on the market.

The Dow Jones Industrial Average tumbled 0.95 percent. The S&P 500 Index fell 0.62 percent. The Nasdaq Composite Index dropped 0.43 percent.

Other major stock exchanges across the globe saw weak performances Wednesday, hurting investor confidence in China and prompting a round of profit-taking after a strong rebound in past trading days.

The Shanghai Composite Index has achieved a rebound of more than 100 points in the past six trading days after the index dived under the 2,000-point mark on Sept. 26.

Shipbuilders led the drops, with the sub-index for the sector plunging 3.64 percent.

China CSSC Holdings Ltd., a leading shipbuilder, dived 4.11 percent to 20.06 yuan per share, while another industry leader, the China Shipbuilding Industry Co., dropped 2.07 percent to 4.73 yuan.

Bucking the trend, major banks saw slight gains. The Industrial and Commercial Bank of China (ICBC), the country's largest commercial bank, rose 0.53 percent to 3.82 yuan. China Construction Bank rose 0.25 percent to 4.07 yuan per share.

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