Economy

Chinese equities fall

(Xinhua)
Updated: 2009-12-25 19:38

BEIJING: Chinese equities declined 0.38 percent on Friday, led by losses from market heavy weights and resource-related shares, after a 2.6 percent surge on Thursday,

The benchmark Shanghai Composite Index lost 12.06 points, to close at 3,141.35 points.

The Shenzhen Component Index slid 0.12 percent, or 15.37 points, to close at 13,289.94 points.

Combined turnover dropped to 175.63 billion yuan (US $25.71 billion), from 202.26 billion yuan the previous trading day.

"Friday's mild decline is a normal correction after yesterday's advance, but the shrank of the total turnover could be regarded as a potential risk for the last four trading days next week," said Xue Bin, an analyst from the Beijing-based Essence Securities.

Although winners outnumbered losers by 467 to 362 in Shanghai, the key index was dragged down by weak performance of the heavy weights.

China Merchants Bank, the nation's sixth largest lender, shed 1.74 percent to 16.4 yuan. China Shenhua Energy Co., the country's largest ?coal producer, lost 1.29 percent to 32.79 yuan. Bank of Communications, China's fifth biggest lender, fell 1.07 percent to end at 8.32 yuan.

Resource-related companies including coal, nonferrous metal, and the gold producers led the losses. Guizhou Panjiang Refined Coal Co., dropped 2.02 percent to 28.63 yuan. Guangdong Jingyi Metal Co., slumped 3.77 percent to end at 24.5 yuan.

Computer producers and telecom operators continued to gain, after the government said earlier this week that it would continue to fuel the information and telecom industry by boosting the build-out of the 3G network and the development of TD technology research over the next year.

Fujian Newland Computer Co., and the Shenzhen-based Han's Laser Technology Co., rose by the daily limit to end at 14.85 yuan and 10.03 yuan, respectively.