| Global credit worries pull down domestic stocks |
SHANGHAI, Aug. 16 -- DOMESTIC stocks tumbled for the first time in three days during the morning session amid global credit worries related to United States subprime mortgage loans.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, slid 2.04 percent, or 99.44 points, to 4,770.44 at the 11:30am break.
The Shenzhen Composite Index, which covers the smaller mainland stock market, dropped 0.92 percent, or 12.23 points, to 1,313.89.
Blue-chip companies reported widespread drops this morning.
Industrial and Commercial Bank of China dropped 3.53 percent to 6.84 yuan (90 US cents) per share and Bank of China lost 3.55 percent to 5.97 yuan.
China Life Insurance Co, the country's top insurer, dropped 4.31 percent to 48.85 yuan while its rival Ping An Insurance (Group) Co lost 4.89 percent to 93.20 yuan.
China Vanke Co, the nation's biggest listed developer, lost 3.62 percent to 32.50 yuan.
Baoshan Iron & Steel Co, the country's biggest steel maker, lost 3.64 percent to 15.36 yuan and Angang Steel dropped 4.85 percent to 26.88 yuan.
Aluminum Corp of China, the nation's biggest producer of the metal, rose 1.32 percent to 34.65 yuan after the company announced yesterday that it bought a 91 percent stake in Peru Copper Inc for US$860 million.
Yunnan Copper, the country's third-biggest copper maker, jumped 2.78 percent to 55.50 yuan.
Air China rose 2.04 percent to 15.50 yuan and Shanghai Airlines rose 0.41 percent to 12.33 yuan.
China's aviation regulator yesterday announced that it will not accept any applications to set up new airlines by 2010.
Other key global markets recorded heavy falls either yesterday or this morning.
The Dow Jones industrial average yesterday fell 167.45, or 1.29 percent, to 12,861.47, closing below 13,000 for the first time since April 24 and continuing a weeks-long pattern of triple-digit moves.
The US Federal Reserve added more cash to the American banking system but failed to quash jitters about problems in lending.
The benchmark Nikkei 225 index lost 428.15 points, or 2.60 percent, to 16,047.46 points on the Tokyo Stock Exchange at the end of the morning session, its lowest intraday level since November 29.
This morning, the Bank of Japan injected 400 billion yen (US$3.4 billion) into money markets, the third time since Friday it has acted in a bid to curb rises in a key overnight interest rate.
South Korean shares plunged as much as 7.5 percent this morning. The Korea Composite Stock Price Index traded at 1,688.58 after about two hours of trading, down 129.31, or 7.1 percent.
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