Home China Headline Stocks decline sharply as traders lock in gains

Stocks decline sharply as traders lock in gains

Shanghai's benchmark stock index plunged 8.84 percent yesterday - the biggest single-day drop in a decade - after profit taking by institutional traders led to panic selling among individual investors. The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, closed at 2,771.79. Trading volume soared to a record 131.6 billion yuan (US$16.57 billion), up 42 percent from the previous day. On the smaller exchange in Shenzhen, the Composite Index dropped 8.54 percent to 709.81. Yesterday's performance was a marked turnaround from Monday's session - the first after the weeklong Spring Festival - when the Shanghai index gained 1.4 percent to close at a record 3040.6 "The fact that a tumble occurred was no surprise to us, as the country's key index has been trading at record levels, and many stocks are considered overvalued," said Dai Ming, an analyst at Kingsun Investment Management Co. Trackback(0) TrackBack URI for this entry Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Show/Hide comment form Name Email Website Title Comment Write the displayed characters Add Comment Copyright 2007. All Rights Reserved.

 

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