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Chinese Stocks Plunge Thursday

iconFeb 22, 2013 08:47
Source:SMM
Chinese stocks plunged Thursday on news of possible slowing or ending of quantitative easing in the U.S. and tightening property curbs in China.

BEIJING, Feb. 21 (Xinhua) -- Chinese stocks plunged Thursday on news of possible slowing or ending of quantitative easing in the U.S. and tightening property curbs in China.

The benchmark Shanghai Composite Index slumped 2.97 percent, or 71.23 points, to end at 2,325.95, while the Shenzhen Component Index declined 2.59 percent, or 249.76 points, to 9,396.11.

Combined turnover on the two bourses totaled 245.26 billion yuan (39.03 billion U.S. dollars).

Minutes from the last policy meeting of the U.S. Federal Reserve released on Wednesday indicated that the country's central bank could slow or halt its asset purchase program, also known as quantitative easing, which aroused concerns that the move will slow the recovery of the country's job market.

The Dow Jones industrial average shed 0.77 percent, to 13,927.54, while the S&P 500 plunged 1.24 percent, to 1,511.95.

The Chinese stock market subsequently tumbled on Thursday, with the brokerage, coal and non-ferrous metal sectors leading the declines.

Sub-indices for the three sectors fell 5.25 percent, 4.62 percent and 4.18 percent, respectively, marking huge losses.

Sealand Securities Co. tumbled 6.65 percent to 12.91 yuan per share, while Gansu Jingyuan Coal Industry And Electricity Power Co. plunged 8.18 percent to 23.11 yuan per share.

The Aluminum Corporation of China, the country's largest alumina producer, declined 3.67 percent to 4.99 yuan per share.

Property developers also slumped, as the central government pledged Wednesday to strictly implement and improve housing market tightening measures in 2013.

China Vanke Co., the largest property developer in China, declined 1.14 percent to 11.31 yuan, while real estate giant Poly Real Estate Group Co. fell slightly 0.73 percent to 12.3 yuan per share.

Bucking the trend, liquor producers rallied. Hebei Hengshui Laobaigan Liquor Co. jumped 5.44 percent to 43.2 yuan per share, while the Anhui Gujing Distillery Company climbed 2.18 percent to 30.45 yuan per share.
 

Chinese stocks
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