Chinese stocks end lower after Japan downgrade
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Xinhua, August 24, 2011
China's stocks end lower on Wednesday, tracking losses on the peripheral markets after Moody's downgraded Japanese government's credit rating.
The benchmark Shanghai Composite Index gave up early gains in the morning session to close the day by falling 0.51 percent, or 12.93 points, to 2,541.09. The Shenzhen Component Index inched down 0.04 percent, or 4.47 points, to finish at 11,238.95.
Aggregated turnover was 146.8 billion yuan (22.94 billion U.S. dollars), expanding from Tuesday's 128.26 billion yuan.
Losers outnumbered gainers by 585 to 312 in Shanghai and by 711 to 577 in Shenzhen.
Financial shares slipped amid investor jitters as Japan became the latest country hit by sovereign debt downgrades.
The Industrial and Commercial Bank of China, the country's largest listed lender, declined 0.73 percent to 4.08 yuan. Bank of China edged down 0.34 percent to 2.95 yuan. Shares of the China Merchants Bank shed 1.1 percent to 11.64 yuan.
Shares of non-ferrous metals also dropped, with the Zhongjin Gold Corp. diving 2.61 percent to 27.95 yuan. Henan Yuguang Gold and Lead Co. tumbled 3.65 percent to 27.21 yuan.
On Wednesday, Moody's Investors Service cut Japan's rating to Aa3 from Aa2, citing the country's large budget deficits and debt build-up since the 2009 global recession.
Tokyo stocks closed sharply lower with the key Nikkei stock index dropping 1.07 percent. Meanwhile, Hong Kong stocks plunged 2.06 percent to close at 19,466.79 on Wednesday.
