Before tomorrow’s scheduled release of the industrial profits data, Chinese stocks saw a decline today. The benchmark index of the country, SHCOMP slumped by 0.5% to finish at 2017.46. On the other hand, SHSZ300 index also sank by 0.8%. It is at 2175.60 now. HSCEI Index of different companies in Hong Kong also plummeted by 0.2%. However, the CH55BN Index had a different fate. This index measuring the most traded US listed Chinese companies jumped up by 2.3%.
According to Wu Kan, a Fund Manager at Dazhong Insurance Co., the 2000 level of SHCOMP will have a psychological impact on the investors. The investors may even expect some Government support when the index approaches more towards 2000 level. However, Wu added that no big surge for the index should be expected in near future as there is almost no hope of some highly positive economic news.
JiuGuiJiu Co., the renowned liquor maker of China has slumped by 10% for a straight 2nd day as a report examining its products stated that those contain plasticizer. Pingdingshan Tianan Coal Mining Co. also went down by 1.6% and finished at 7.81 per Yuan. Chongqing Iron & Steel Co. was an exception as it surged up by 10%. The company recently announced to buy assets (Iron making assets, coking and supporting facilities) from its parent company and this plan was approved by the regulator of the company.
Among others, Shanxi Lu’an Environmental Energy Development Co. sank by 2.2% and is currently priced at 18.30 Yuan per share. Both the largest and second largest baijiu producer of China, Kweichow Moutai Co. and Wuliangye Yibin Co. respectively, experienced a slid of 2.3%.
The Statistics Bureau of China is going to release the profit information of industrial companies for the month of October tomorrow. Incidentally, in September, the profits saw an increase of 7.8%, if compared to that of September, 2011. September’s increase marked the first surge in the last six months.
Next week, the annual central economic work meeting is going to be held in Beijing. It is reported by The China Business News that the gross domestic product growth target may be set at 7.5% for 2013. However, there is still no official confirmation on this. Incidentally, the target was same for this year as well.