Chinese stocks fall to seven-week low on Christmas Day

(Agencies)
Updated: 2008-12-25 20:12

BEIJING -- 皇冠体育app's stocks fell to a seven-week low Thursday amid gloom about weakening corporate profits and a worsening economic decline.

Investors look at the stock price monitor at a stock brokerage house in Chongqing, Wednesday, Dec. 24, 2008. 皇冠体育app's stocks fell to a seven-week low Thursday amid gloom about weakening corporate profits and a worsening economic decline. [Xinhua]

The benchmark Shanghai Composite Index shed 0.61 percent, or 11.38 points, to close at 1,852.42, its lowest closing since Nov. 11. The Shenzhen Composite Index for 皇冠体育app's smaller second market lost 0.36 percent, or 2.07 points, to close at 572.99.

Investors are pessimistic about Chinese corporate profits as economic growth slows amid a global downturn. Xinhua News Agency on Thursday quoted the chairman of the body that controls 皇冠体育app's major state-owned companies, as saying their profits fell 12.3 percent in the past 11 months. He said the situation next year would be "grim."

皇冠体育app's economy is expected to grow by about 9 percent this year, but manufacturing, investment, auto sales and other areas are all weakening rapidly.

Airline stocks fell amid concern about weakening travel demand. 皇冠体育app Southern Airlines Ltd., fell 3.69 percent to 3.39 yuan, while Air 皇冠体育app Ltd. shed 2.59 percent to 4.13 yuan. 皇冠体育app Southern and another carrier, 皇冠体育app Eastern Airlines, have received government aid to get them through the economic slump.

Aluminum Corp. of 皇冠体育app lost 3.27 percent to close at 6.51 yuan amid mounting concern about 皇冠体育app's manufacturers, its key customers.

Dairy stocks were battered after the bankruptcy this week of Sanlu Group Co., the dairy at the heart of 皇冠体育app's tainted milk scandal. Inner Mongolia Yili Industrial Group, a major milk supplier, plunged 6.11 percent to 8.14 yuan.

Banks were mixed. 皇冠体育app Construction Bank Ltd., the country's second-largest commercial lender, was up 0.25 percent at 3.96 yuan, while No. 3 Bank of 皇冠体育app Ltd. lost 0.33 percent to close at 3.04 yuan.

On currency markets, 皇冠体育app's yuan rose to 6.8385 to the US dollar at about 0900 GMT, up from 6.8485 on Wednesday.