| Share prices fall in biggest single-day retreat in 6 months |
SHANGHAI, Jan. 12 (AP) -- Chinese shares tumbled Friday, marking their biggest decline in six months as investors sold blue chips.
The benchmark Shanghai Composite Index slipped 3.7 percent at 2,668.11, the sharpest single-day drop since a 4.8 percent slump on July 13, 2006. The smaller Shenzhen Composite Index fell 2 percent to 599.80.
Analysts said they expected further declines due to weakness in blue chips.
"The market seems to have exhausted its short-term gaining momentum," said Shi Honglin, an analyst at Everbright Securities. "It's in need of correction to squeeze out the bubbles."
Among the biggest losers, China Petroleum & Chemical, Asia's top refiner by capacity, plunged shed 7.3 percent to 9.59 yuan. The company hit an intraday record of 11.39 Wednesday and has since moved lower.
Other blue chips also tumbled as traders expecting a near-term correction retreated to the sidelines.
Shanghai International Port (Group) was down 7.2 percent at 7.38, Daqin Railway plunged 6.4 percent to 8.28 yuan and China Yangtze Power dropped 6 percent to 9.57 yuan.
Index heavyweights Industrial & Commercial Bank of China and Bank of China extended losses from the day before. ICBC fell 3.3 percent to 5.33 yuan and BOC declined 4.1 percent to 4.73. Both had lost nearly 5 over the past two days.
In a research note issued this week, JP Morgan put the price target for ICBC at 4.80 yuan and that for BOC at 4.50.
"Many traders had expected the correction of ICBC and BOC to be temporary. But it seems not to be the case, with more and more blue chips playing catch-up," said Wang Sheng, a strategist at Haitong Securities.
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