Sell-off of Pudong counters hits index
HEAVY selling of shares associated with Shanghai's Pudong development area sent the city's A index down 0.92 per cent yesterday.
The Credit Lyonnais Shanghai A index ended at 3,530.66, down 134.28 points, its lowest level since the exchange began keeping meaningful statistics early last year.
Turnover fell to 1.01 billion yuan, about half of last month's daily average turnover.
Brokers said investor flight away from so-called ''Pudong concept'' shares showed the seriousness of the market slump.
It indicated that worse is in store for the market that has lost about 20 per cent of its value since the start of the year due to a heavy volume of new listings and fears a large bond issue will suck money out of stocks.
Pudong counters have been the star performers of the market, remaining buoyant while other counters slumped amid optimism about the long-term future of the development zone intended to lead Shanghai into the next century.
Shanghai Jinqiao Export Processing Zone Development led the day's heavy losers, shedding 2.02 yuan to 22.70 yuan on volume of 1.17 million shares.
Shanghai Lujiazui Finance and Trade Zone Development, the third biggest loser, also plummeted 1.51 yuan to 17.95 yuan on volume of 958,000 shares.
The Shanghai Credit Lyonnais B index fell by 6.52 points, or 0.92 per cent, to 706.14 on thin volume of 3.09 million shares, partly because of renewed concern over rising inflation in China, brokers said.
The index has lost more than 40 per cent since the start of the year.
''The B market will remain weak in the near future as the whole market is unlikely to recover,'' one broker said.