Trader Sentiment Fragile After China’s 7th Straight Loss
Sentiment is very fragile in the Chinese market after the seventh down day in a row, wiping out all of 2012’s gains.
The Shanghai Composite Index lost 0.95 percent to close at 2195.84.
The Shanghai and Shenzhen bourses issued the final version of delisting rules. The draft rules were released two months ago and have since been amended on market players' suggestions. The regulations are aimed at weeding out underperforming companies which have led to poor returns for investors and subsequently their short-term mentality. (Related: See complete China and Asia news and analysis.)
Stocks to Watch:
Industrial Bank - The lender has received regulatory approval to place 1.915 billion shares in order to replenish capital. But the deal is 8 percent less than the originally planned 2.072 billion shares as one of its investors, Beijing Municipal Infrastructure Investment Co., will no longer take part.
Tsingtao Brewery, New Huadu - The brewer's shares may fall when they resume trading on Friday after announcing its chairman, Jin Zhiguo, will retire for health reasons and be replaced by current general manager Sun Mingbo. Tsingtao sought to address questions of insider trading by stating that the chairman's departure was not known by Tsingtao's strategic investor New Huadu beforehand. New Huadu sold down its H-share stake in the brewer 10 days ago.
Shenzhen-Based Stocks - Companies with land or investment plans in Qianhai may see their shares rise after officials announced the trial program to allow yuan conversion in the new economic zone.
Coming Up This Week:
FRIDAY: Japanese housing starts
SATURDAY: Chinese manufacturing PMI, South Korean trade balance
—By Cheng Lei, CNBC Asia Pacific