June 5, 2012
Translated by Zhu Na

 
The Shanghai Composite Index fell 64.89 points or 2.73 percent yesterday, the biggest single day drop this year, on what analysts say was a reaction to the sharp drop in European and American stock markets on June 1 and poor expectations for the domestic economy following week PMI data. The main Shenzhen index also fell sharply yesterday,

In early trading, both the Shanghai and Shenzhen markets opened low. The Shanghai Composite Index hit an intra-day low of 2308.23 points before closing at 2308.55 points. The Shenzhen Component Index fell 2.67 percent, to close at 9874.52 points.

Analysts believe that three factors helped push the local markets lower yesterday. Firstly, the markets were impacted by poor U.S. employment data and a perceived worsening of European debt problems.

Secondly, a rumor about the launch of a new international board over the weekend upset the A-share market, but authorities later responded to the rumors after the market closed yesterday.

Third, the most recent PMI data indicated a decline in the rate of domestic economic growth and the market is cautious ahead of the release of other economic data for May on June 9.

Stock markets across the Asia-Pacific all saw major indices fall yesterday.

At the close of trading, Hong Kong's Hang Seng Index was down 2.01 percent;  the Nikkei 225 was down 1.71 percent; the main index in South Korea closed at 1783.13 points, down 2.80 percent and the Singapore Straits Times Index closed at 2698.90 points, down 1.70 percent.

 
Links and Sources
China Securities Journal: 2.73% 沪综指现今年以来最大跌幅