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ReturnChina stocks slide more than 6 pct；supply fears
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admin
PublishDate：
2008-11-18 15:48:00
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419
SHANGHAI, Nov 18 (Reuters) - China's main stock index tumbled more than 6 percent on Tuesday, pulling back from technical resistance as the property sector sagged.
Investors were also disappointed by news that Dongfang Electric Corp planned to raise up to 1.33 billion yuan ($195 million) with a share issue, as that could signal a resumption of fund-raising exercises by Chinese companies, increasing the supply of shares, traders said.
The Shanghai Composite Index was down 6.23 percent at 1,904.012 points about 35 minutes before the close in heavy trade. Over the previous six trading days, it had jumped 16.18 percent in response to the announcement of China's economic stimulus package.
The index rose in early trade but then pulled back in heavy turnover from its 60-day moving average, now at 2,058 points, which some traders consider important chart resistance.
Property shares were hurt by concern that China's economic slowdown would continue undermining real estate prices; Vanke slumped 9.22 percent to 6.20 yuan.
Shares in Dongfang Electric, which said it would issue up to 65 million new A shares, plunged their 10 percent daily limit to 22.22 yuan.
($1 = 6.82 yuan)
Source: Reuters
Investors were also disappointed by news that Dongfang Electric Corp planned to raise up to 1.33 billion yuan ($195 million) with a share issue, as that could signal a resumption of fund-raising exercises by Chinese companies, increasing the supply of shares, traders said.
The Shanghai Composite Index was down 6.23 percent at 1,904.012 points about 35 minutes before the close in heavy trade. Over the previous six trading days, it had jumped 16.18 percent in response to the announcement of China's economic stimulus package.
The index rose in early trade but then pulled back in heavy turnover from its 60-day moving average, now at 2,058 points, which some traders consider important chart resistance.
Property shares were hurt by concern that China's economic slowdown would continue undermining real estate prices; Vanke slumped 9.22 percent to 6.20 yuan.
Shares in Dongfang Electric, which said it would issue up to 65 million new A shares, plunged their 10 percent daily limit to 22.22 yuan.
($1 = 6.82 yuan)
Source: Reuters
