Chinese stocks close lower Wednesday
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Xinhua, December 21, 2011
Chinese stocks closed lower on Wednesday after Ping'an, the Chinese insurance giant, announced its financing plan of 26 billion yuan (4.10 billion U.S. dollars) on Tuesday.
The benchmark Shanghai Composite Index dropped 1.12 percent, or 24.78 points, to close at 2,191.15.
The Shenzhen Component Index slid 1.63 percent, or 147.42 points, to finish at 9,054.08.
Combined turnover shrank to 90.76 billion yuan (14.32 billion U.S. dollars) from 95.45 billion yuan the previous trading day.
Losers outnumbered gainers by 849 to 69 in Shanghai and by 1249 to 100 in Shenzhen.
The board of Ping'an announced Tuesday that the company will issue convertible bonds valued at no more than 26 billion yuan. As a result, the shares of Ping'an dropped over 5 percent, which spooked and dragged down the Chinese stock market, despite the surges in the markets of the U.S. and Europe.
Shares of real estate and shares of brokerages also led the declines after the remarks of Premier Wen Jiabao during his tour to Jiangsu province on Sunday and Monday.
Wen urged banks to better serve the real economy and asked financial institutions to improve management in order to control the capital bubble and prevent risks.
Shares of Chongqing Beer halted its drops in the daily trading limit of 10 percent for nine consecutive trading days and closed up 0.7 percent.
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