China's main share index fell 4% to a 12-month closing low on Friday, dragged down by a fall in PetroChina shares and growing concerns about the economy.
The Shanghai Composite share index dropped 3.97% to finish at 3,095 points on the Shanghai Stock Exchange.
Shares in PetroChina fell 5% to 16.02 yuan, below the price at which it first floated last October.
Investors are worried that higher oil prices will trim profits at the company's petrol operations.
As PetroChina is China's largest listed company, analysts said it was inevitable that its decline would hit wider market sentiment, dragging down other stocks.
Chinese investors are also said to be concerned at the government's continuing efforts to cool both inflation and growth at a time of global economic uncertainty.
2 comments:
The Chinese markets were working on PEs of 50 ... the fall was pretty much expected. Infact, the chinese stock market is one of the most volatlie markets .. so expect more such surprises.
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Shankar
http://scrip-tures.blogspot.com
Hi,
I'd like to connect with you for an input for an article I am writing on Warren Buffet's investment style.
Could you please email me ASAP at charubahri at gmail dot com so that I may email you a question. I'm working on this article for an Indian business digest - businessgyan.com
Best regards,
Charu
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