Chinese shares in largest drop for a month amid weak Japan trade

0
1292

Chinese share prices fell Wednesday, after Japan said its exports to the country fell 3.5 per cent year-on-year in September.

The benchmark Shanghai Composite Index closed down 3.06 per cent, its largest drop for a month, after substantial gains last week prompted speculation of an excessive rally.

The Shenzhen Component Index plunged 5.87 per cent and the ChiNext Index, which tracks tech and other growth companies, closed 6.63 per cent lower.

“Investors were waiting for opportunities to lock in profits and when there were signs of some profit-taking, others followed suit,” Shanghai-based analyst Qian Qimin was quoted as saying by financial news agency Bloomberg.

The Japanese trade data for September comes among concern about China’s falling growth rate. Japan’s exports to the United States jumped 10.4 per cent in the same period.

On Monday, China said its economic growth rate fell to 6.9 per cent year-on-year in the third quarter, below the 7-per-cent target that the government has set for the whole of 2015.

Analysts say China is struggling to meet that target amid sluggish investment growth and falling exports.

China earlier revised down its estimate of 2014 GDP growth from 7.4 to 7.3 per cent, the weakest annual expansion in 24 years.

NO COMMENTS