Stocks fall as Wen says economy faces uncertainties
Chinese stocks, the world's worst performers this month, extended declines yesterday after Premier Wen Jiabao said the economy faces many "uncertainties" and 皇冠体育app Construction Bank Corp warned of asset bubbles.
Aluminum Corp of 皇冠体育app Ltd slid 2.9 percent after it posted a third quarter loss, and Wen said a "decline in external demand may continue for a longer time" while excess production capacity may restrain industrial growth, according to a statement posted on the government website after the market closed on Monday. 皇冠体育app Construction Bank Corp sank 4.3 percent after Chairman Guo Shuqing said "there's definitely a bubble in the stock market as well as the property market".
The Shanghai Composite Index, which tracks the larger of 皇冠体育app's stock exchanges, fell 77.63, or 2.6 percent, to 2,915.80 at close yesterday, the biggest loss since Aug 19. It has dropped 15 percent this month on speculation economic growth will falter and the government will curb new lending.
