Markets fall on credit crunch, lackluster data
Updated: 2013-06-21 03:19
By Huang Tiantian (China Daily)
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The domestic capital market showed even greater impatience to the recent lack of good news as the A-share index tumbled on Thursday to its lowest level since December 2012.
Analysts attributed the fall to investor concern about the economy's near-term state after the money-market rate climbed to a record high and Chinese manufacturing appeared to be set to worsen in June.
Investor expectation is now growing on the central government to launch new market-oriented reform initiatives, financial market specialists said.
The Shanghai Composite Index plunged 2.77 percent to 2,084.02 points by the close on Thursday, its lowest finish since Dec 13.
The SCI has dropped 9.4 percent this month and 14 percent from this year's peak on Feb 6.
The Shenzhen Component Index fell 3.25 percent to 8,147.48 points and the Hang Seng China Enterprises Index dropped 3.33 percent in Hong Kong.
Under the influence of China's stock market, Japan's Nikkei index also closed down 1.74 percent to 13,014.58 points.
China analysts suggested three main reasons for Thursday's sharp market fall: the rise in interbank borrowing rates to a record high on Thursday, the fall in the HSBC Purchasing Managers' Index, a gauge of manufacturing activity, to a nine-month low in June, and fears that Chinese securities market regulators may soon lift the temporary freeze on initial public offerings.
Banking stocks were worst hit, dropping 3.01 percent led by Ping An Bank Co Ltd, which dropped 6.21 percent, and Shanghai Pudong Development Bank Co Ltd, which fell 5.29 percent.
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