| Shanghai stocks tumble amid massive global losses |
SHANGHAI, Aug. 29 -- SHANGHAI stocks slid today after rising for seven straight days on China's issuance of special bonds and a fluctuating global market.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, slid 1.64 percent, or 85.26 points, to 5,109.43.
The Shenzhen Composite Index, which covers the smaller mainland stock market, rose 1.66 percent, or 23.86 points, to 1,411.60.
Angang Steel Co, China's second-biggest steel maker by value, dropped 4.24 percent to 32.99 yuan (US$4.36). The steel maker said a share-placement plan was "conditionally'' approved by the securities regulator.
Industrial and Commercial Bank of China lost 2.61 percent to 6.71 yuan and Bank of Communications lost 4.46 percent to 13.07 yuan.
Industrial Bank Co was the only bank whose share prices rose today. It jumped 2.55 percent to 59.58 yuan.
Airliners performed strongly today on news that the central government has approved Singapore Airlines Ltd's plans to buy a stake in China Eastern Airlines Corp.
The airliner will reportedly resume trading on Monday, which is expected to drive up the airline sector.
Air China shares rose 6.55 percent to 17.40 yuan after the company reported today that its first half net profit more than tripled from a year earlier, boosted by strong passenger demand and the rise in the value of the Chinese yuan.
Net profit for the six months ending June 30 surged to 1.57 billion yuan, or 3.4 times earnings of 458 million yuan, from the same period a year earlier.
China Southern Airlines rose 8.22 percent to 18.56 yuan and Shanghai Airlines rose 6.07 percent to 12.40 yuan.
Xinjiang Bayi Iron & Steel Group rose 7.69 percent to 11.35 yuan.
Northeast Securities Co, which went public on Monday by buying control of Liulu Industrial Co, rose 4.61 percent to 59.49 yuan.
China is expected to issue the first batch of its special government bonds today, worth 600 billion yuan, to help set up the nation's new foreign-exchange investment agency and mop up excess liquidity.
Asian markets reported widespread drops today following a decline in US shares overnight amid simmering concerns over global credit market turmoil and fears the US Federal Reserve won't do enough to ease a credit crunch.
Japan's benchmark Nikkei Stock Average of 225 issues closed at 16,012.83 points on the Tokyo Stock Exchange, down 274.66 points, or 1.69 percent, from yesterday.
South Korea's main benchmark dropped as much as 3.1 percent before finishing only 3.12 points, or 0.2 percent, lower than yesterday's close.
Markets in Australia, India, Indonesia, New Zealand the Philippines and Thailand as well as China's Hong Kong and Taiwan were also down.
Overnight in New York, the Dow Jones industrial average sank 280.28, or 2.10 percent, to 13,041.85, its biggest drop since August 9. Investors grew more uneasy about whether the Fed, the US central bank, will take the steps needed to prevent credit market problems from spreading further.
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