Friday, October 10, 2008

Chinese shares plunge 3.81% in morning session

Chinese shares plummeted 3.81 percent in the morning session on Friday, echoing the heavy losses of global markets, with the Shanghai Composite Index ending at 1995.52 points, down 79.06 points or 3.81 percent from the previous close.

The smaller Shenzhen Component Index shed 367.38 points, or 5.44 percent to 6,390.84 points.

The confidence still remained weak despite the government's recent measures to boost the market, analysts said.

China's securities regulator on Thursday said publicly-traded companies must pay dividends in cash rather than stock over three years before submitting their refinancing applications, in a move to encourage long-term investment and reduce market volatility.

None of the top ten heavyweights have their shares rise in the morning session.

Sinopec trimmed 2.45 percent to 9.94 yuan, with 4.335 billion non-tradable shares of the Asia's top refiner freed-up on Friday. PetroChina, the country's largest oil producer, lost 1.4 percent to 11.97 yuan.

The Industrial and Commercial Bank of China dipped 1.23 percent to 4.01 yuan, while the Bank of China shed 5.12 percent to3.15 yuan. China Life, the country's largest life insurer, saw its shares drop 5.97 percent to close at 19.39 yuan.


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