“Poor retail sales and GDP data sent Chinese stocks down 10% in a session.
China’s stocks fell, dragging the Shanghai Composite (SHCOMP) Index down by 10 percent from its February high, as data on the nation’s economic growth and industrial production missed estimates.
Construction machinery maker Zoomlion Heavy Industry Science and Technology Co. slumped to a 15-month low after forecasting lower profit. Cosco Shipping Co. (600428), a unit of China’s biggest shipping company, lost 3.9 percent after reporting a loss. Zijin Mining Group Co. sank 5.6 percent, leading gold producers lower, after the metal’s futures dropped by the 5 percent daily exchange limit in Shanghai.
The Shanghai Composite fell 1.1 percent to 2,181.94 at the close, its lowest level since Dec. 24. The economy grew 7.7 in the first quarter from a year earlier, the National Bureau of Statistics said today, less than the 8 percent median forecast in a survey of 41 economists. Industrial production rose 8.9 percent in March, the report showed. That compared with the 10.1 percent median economist forecast.
“These figures are pretty bad,” said Dai Ming, a fund managerat Hengsheng Hongding Asset Management Co. in Shanghai, which manages $190 million. “The current stock prices haven’t fully reflected lower-than-expected economic data and the market has room for further declines.”
The CSI 300 Index retreated 1 percent to 2,436.82. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies traded in Hong Kong slid 1.8 percent. The Bloomberg China-US 55 Index (CH55BN), the measure of the most-traded U.S.-listed Chinese companies, fell 0.5 percent in New York yesterday.
Economic Data
The Shanghai index has fallen 10 percent from a Feb. 6 high amid concern steps to coolproperty prices will drag on economic growth. Valuations on the gauge dropped to 8.9 times projected 12-month earnings on April 12, the lowest level since Dec. 13 and less than the seven-year average of 15.8, data compiled by Bloomberg show…”
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