Share

Shanghai stocks down 2.4% by the break

Shanghai - Shanghai stocks ended the morning 2.4% lower on Monday, extending last week's near 10% plunge as weak inflation figures at the weekend compounded the gloom over the economy.

The benchmark Shanghai Composite Index sank 76.46 points to 3 109.95, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, plunged 3.50% 69.30 points to 1 909.42.

China's consumer price inflation came in at 1.6% in December, the government said on Saturday, well short of the government's target of "around three percent".

In Hong Kong the benchmark Hang Seng Index slipped 2.45% 501.08 points to 19 952.63 by lunch.

Global investors have been alarmed by slowing growth in the world's second-largest economy, which is expected to have expanded last year at its slowest pace in a quarter of a century.

Official data on fourth-quarter and annual growth is due to be released later in January.

Shanghai shares closed higher on Friday after authorities reversed course and suspended a new "circuit breaker" mechanism that had fuelled a global rout by twice automatically closing Chinese markets early.

"China's equity and currency markets remain very volatile even after the authorities have attempted to stem price movements," Moody's Investors Service said in a commentary on Monday.

"China's authorities are finding it increasingly difficult to reconcile the tensions inherent in designing and implementing credible and effective reform measures while maintaining economic, financial, and social stability," it said.

Beijing is seeking to transition the country's growth model away from reliance on exports and fixed-asset investment towards a consumer-driven economy, but the reform is proving bumpy.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders