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Yuan Weakens against Dollar for 4th Straight Day

Finance — Tue, 02 Dec 2008 13:59:51 +0800

Asian Markets Follow Wall Street's Plunge

Finance — Tue, 02 Dec 2008 13:52:51 +0800

Gloom and volatility returned to Asian markets Tuesday as investors dumped stocks following huge overnight losses on Wall Street and dismal U.S. economic reports revived fears of a global recession. Oil prices fell to three-year lows.World markets rallied last week, but any nascent investor confidence quickly wilted after grim U.S. economic figures sent the Dow Jones industrial average plummeting nearly 700 points - or 7.7 percent - Monday, wiping out more than half of last week's big gains."I saw that figure this morning, and I thought, 'Oh, no. Here we go again,"' said Peter Wright, an associate at Burrell Stockbroking, as he watched Australian shares plummet from the opening bell.Australia's central bank slashed its key interest rate Monday a full percentage point to 4.25 percent in an attempt to prevent the economy from sliding into recession. But investors took scant comfort from the move, sending the benchmark S&P/ASX 200 index down 4.2 percent to 3,528.2.Japan's Nikkei 2...

Hong Kong stocks close 4.98% lower

Finance — Tue, 02 Dec 2008 13:40:41 +0800

China to work with Obama's national security team

Finance — Tue, 02 Dec 2008 13:08:37 +0800

BEIJING —

China said Tuesday it is looking forward to working with President-elect Barack Obama's national security team, welcoming Hillary Rodham Clinton as secretary of state and retired Marine Gen. James Jones as White House national security adviser.

Foreign Ministry spokesman Liu Jianchao said China's Foreign Minister Yang Jiechi has already sent a message congratulating both on their appointments.

"Foreign Minister Yang spoke positively of progress made in Sino-US relations in recent years, and is looking forward to working together on promoting constructive and cooperative Sino-US ties," Liu told a news conference.

Liu brushed off reminders that Clinton had been critical of China's human rights record and had urged President George W. Bush not to attend the Beijing Olympic Games' opening ceremony.

"The Beijing Olympics was held successfully and President Bush attended," Liu said, calling Bush's decision to attend "good."

Gettin...

European markets steady after Asian retreat

Finance — Tue, 02 Dec 2008 13:08:05 +0800

LONDON —

European stocks were little changed Tuesday as hopes of a modest rebound on Wall Street - following the previous day's savage retreat - helped offset an overnight slump in Asian markets.

The FTSE 100 index of leading British shares was basically unchanged, up 0.19 points at 4,065.68, while the CAC-40 index in France was down a bare 1.30 points at 3,079.13. Germany's DAX was the best performing European index, up 52.08 points, or 1.2 percent, at 4,446.87.

Earlier, Asian markets slid with Japan's Nikkei 225 stock average tumbled 533.53 points, or 6.4 percent, to 7,863.69, and Hong Kong's Hang Seng index lost5 percent to 13,405.85.

The heavy losses in Asia followed near 5 percent declines in Europe on Monday and the near 700 point, or 7.7 percent, slide in the Dow Jones index of leading U.S. shares, which wiped out more than half of last week's gains.

The gloom gripping world markets at present was stoked by a run of bad data across th...

Asian Market Roundup Dec. 02

Finance — Tue, 02 Dec 2008 09:35:09 +0800

The Chinese mainland stock markets closed mixed on Tuesday.The benchmark Shanghai Composite Index lost 4.98 points, or 0.26 percent, finishing at 1889.64 points.

Yuan Weakens against Dollar for 4th Straight Day

Finance — Tue, 02 Dec 2008 07:54:11 +0800

Chinese shares close slightly higher in morning session

Finance — Tue, 02 Dec 2008 07:10:50 +0800

BEIJING, Dec. 2 (Xinhua) -- Chinese share prices climbed by a slightly 0.1 percent in the morning session on Tuesday, despite a Wall Street plunge overnight.

The benchmark Shanghai Composite Index was up 1 point, or 0.1 percent, from the previous close to end the morning session at 1,896 points.

The Shenzhen Component Index finished at 6,851 points, up 87 points, or 1.29 percent.

A preliminary meeting for the Central Economic Work Conference has said the government would strive for a 8-percent growth in 2009.

HK stocks rise on hopes of gov't's further economic measures

Finance — Mon, 01 Dec 2008 14:02:35 +0800

Chinese stocks close 1.25% higher on month's first trading day

Finance — Mon, 01 Dec 2008 08:43:15 +0800

Chinese equities closed 1.25 percent higher on Monday, led by gains in shares of manufacturers of electrical equipment and home appliance.

China's domestic logistics turnover hits 75.2 trillion yuan in 2007

Finance — Sun, 30 Nov 2008 13:37:50 +0800

China saw its domestic logistics turnover increased 23.8 times during 1991-2007 period, representing an increase of 22.2 percent annually.

Domestic logistics turnover increased to 75.2 trillion yuan (11 trillion U.S. dollars) in 2007 from 3 trillion in 1991, said Lu Jiang, China Federation of Logistics and Purchasing head.

Foreign enterprises invested 6,996 logistics programs in China in 2007, accounting for 18.5 percent of the country's total volume of foreign investment.

China has invested 7.8 trillion yuan to improve its logistics infrastructure since 1991. The country has 475 logistics basis nationwide, and more than 100 consultation organs currently.

Lu said that the fast development of logistics business had helped to improve the business process of the country's booming production and manufacturing industries and promoted the prosperity of social consumer goods retail sector and E-business.

Last year, sales volume of the nation's 100 large...

Chinese shares drop 2.44%, led by heavy weights

Finance — Fri, 28 Nov 2008 12:24:15 +0800

Special Report: Global Financial Crisis

BEIJING, Nov. 28 (Xinhua) -- Chinese equities closed 2.44 percent lower on Friday led by heavy weights including shares of banks, property developers and coal producers.

The benchmark Shanghai Composite Index finished the day at 1,871 points, down 2.44 percent or 46 points. The Shenzhen Component Index dropped 0.37 percent, or 24 points, to 6,658.

Losers outnumbered gainers by 594 to 244 in Shanghai and by 503to 223 in Shenzhen. Combined turnover shrank to 73.51 billion yuan(10.5 billion yuan) from 123.48 billion yuan the previous day.

Rate cut drives China shares higher, but profit-taking pares morning gains

BEIJING, Nov. 27 (Xinhua) -- Chinese equities opened sharply higher on Thursday in response to an unusually large cut in domestic interest rates, but...

Hong Kong stocks gain 1.37%, paring early huge gains

Finance — Thu, 27 Nov 2008 13:58:54 +0800

China sells 300 bln yuan of welfare lottery in past two decades

Finance — Thu, 27 Nov 2008 13:54:53 +0800

China has sold a total of 325.4 billion yuan (47.64 billion U.S. dollars) of welfare lottery over the past 21 years, the country's lottery watchdog said on Thursday.

Of the sales, 109.6 billion yuan was earmarked for national public welfare fund, said Feng Lizhi, vice director of the China Welfare Lottery Management Center.

The fund was mainly used for the development of social welfare facilities, education and health care for orphans, the elderly and the disabled, said Wang Zhenyao, director of the Social Welfare and Charity Promotion Department under China's Ministry of Civil Affairs.

Thanks to the fund, welfare institutions had increased to 42,057 in China by the end of 2007, 33,069 more than that in 1987.Nearly two million people were accepted by the welfare institutions, 9.39 times more than the capability of welfare organizations could bear in 1987, Wang said.

"In the past, the welfare organizations only provided accommodation, however, their servi...

Chinese shares up 1.05% after rate cut

Finance — Thu, 27 Nov 2008 08:56:30 +0800

Chinese equities closed 1.05 percent higher on Thursday in response to an unusually large interest rate cut, but they gave up some gains due to profit-taking.

The benchmark Shanghai Composite Index finished the day at 1,917 points, up 1.05 percent or 19 points. The Shenzhen Component Index rose 2.29 percent, or 149 points, to 6,683.

The benchmark index has risen nearly 10 percent since the government announced a 4 trillion yuan (585.7 billion U.S. dollars) economic stimulus package on Nov. 9.

Gainers outnumbered losers by 650 to 169 in Shanghai and by 577 to 110 in Shenzhen. Combined turnover more than doubled to 123.48 billion yuan (17.64 billion U.S. dollars) from 60.88 billion yuan the previous day.

Shares rose sharply when the markets opened in response to an unusually large interest rate cut of 1.08 percentage points announced by the central bank after the market closed on Wednesday.

The Shanghai index jumped 6.05 percent at opening, with Sh...

Hong Kong shares jump 3.8 pct after China rate cut

Finance — Thu, 27 Nov 2008 07:13:56 +0800

HONG KONG, Nov 27 (Reuters) - Hong Kong shares gained 3.8percent in their third straight day of gains, riding on the backof China's steepest rate reduction in over a decade, which helpedmainland property counters rack up double-digit percentage gains. China Overseas Land Investment (0688.HK: Quote, Profile, Research, Stock Buzz) surged 13 percent,with China's higher-than-expected 1.08 percentage point interestrate cut, its fourth since mid-September, coming as a shot in thearm for the ailing property sector. Guangzhou R&F Properties (2777.HK: Quote, Profile, Research, Stock Buzz) soared 22.5 percent, whileChina Resources Land (1109.HK: Quote, Profile, Research, Stock Buzz) shot up 11 percent. "Sentiment is changing, swinging from the fear we saw inmid-September to hope now," said Ben Kwong, chief operatingofficer with KGI Asia. At 0330 GMT, the benchmark Hang Seng Index .HSI was 502.09points highe...

Asia stocks rally 5th day on big China rate cut

Finance — Thu, 27 Nov 2008 07:13:42 +0800

HONG KONG (Reuters) - Asia stocks rose for a fifth day on Thursday, helped by hopes that policymakers' efforts will ultimately prevail after China's big rate cut, though U.S. data provided an ominous reminder of the global slowdown. While investors cheered China's largest rate reduction since the Asian financial crisis, views on India, emerging Asia's other titan, darkened after militants killed at least 101 people and held foreigners hostage in the commercial capital Mumbai. India's financial markets were shut for the day following the attacks. Oil prices shrugged off the rise in Asian equities and fell more than $1 toward $53 a barrel as investors shifted their focus back to distressed demand, after U.S. government data showed a sharp buildup in crude stocks. Two different camps of investors were emerging as the end of a wild year for markets approaches. One group believes equity prices have already discounted a g...

China makes policies to address difficulties of enterprises, promote economic growth

Finance — Wed, 26 Nov 2008 17:36:45 +0800

China's State Council, or the Cabinet, said on Wednesday that more efforts would be made to encourage enterprises to upgrade technology and engage in independent innovation.

It also said there would be policies to promote merger and acquisition among enterprises.

The policies were clinched at an executive meeting of the State Council, presided over by Premier Wen Jiabao. The meeting was held to discuss measures to address difficulties faced by enterprises and promote economic growth and deliberate plans to reform finished oil pricing mechanism and fuel taxes and fees.

According to the meeting, plans would be drawn up to help some key industries, including steel, auto, ship manufacturing, petrochemical, light industry, textile, nonferrous metals, equipment manufacturing and information technology.

The meeting urged banks to increase credit supply to help small and medium enterprises overcome difficulties.

To offset adverse global economic conditio...

Chinese shares rise for first time in five days

Finance — Wed, 26 Nov 2008 12:09:08 +0800

Hong Kong stocks surge for two straight sessions

Finance — Wed, 26 Nov 2008 11:44:55 +0800

Asian Market Roundup Nov. 26

Finance — Wed, 26 Nov 2008 07:55:16 +0800

The Chinese mainland stock markets closed up on Wednesday.The benchmark Shanghai Composite Index gained 9.17 points, or 0.49 pct at 1897.88.

Hong Kong stocks end 3.38% higher

Finance — Tue, 25 Nov 2008 12:23:36 +0800

China key stock index ends 0.44% lower

Finance — Tue, 25 Nov 2008 11:57:22 +0800

Hong Kong stocks bounce back 3.38% on Street rally

Finance — Tue, 25 Nov 2008 11:48:39 +0800

Reports to detail economic fallout in 3rd quarter

Finance — Tue, 25 Nov 2008 08:10:52 +0800

WASHINGTON —

Investors on Tuesday braced for several reports expected to show the U.S. economy contracted even more than originally thought in the third quarter as home prices shrank, more banks fell into trouble and consumer confidence sagged.

The reports come on the heels of a Wall Street rally that drove up major indexes more than 4.5 percent Monday on news of the government's plan to bail out Citigroup Inc., a move investors hope will help quiet some of the uncertainty hounding the financial sector and the overall economy.

The Dow Jones industrials soared nearly 400 points, and the 891-point rise since Friday gave the Dow its biggest two-day percentage gain since October 1987.

Asian markets built on the rally overnight. In Japan, the Nikkei 225 stock average was up 3.4 percent, while Hong Kong's Hang Seng index advanced 3.3 percent by midday. South Korea's Kospi rose 1.5 percent.

Before U.S. markets open Tuesday, the Commerce Department i...

Gome Cut to ‘Underperform’ by Credit Suisse on Chairman Probe

Finance — Tue, 25 Nov 2008 06:17:48 +0800

Gome Electrical Appliances Holdings Ltd.'s stock was downgraded to “underperform” by Credit Suisse on media reports the chairman of China's largest electronics retailer by stores is under investigation. Gome yesterday said it's “verifying allegations” against billionaire Chairman Huang Guangyu, China's second richest man, after Caijing magazine said he had been detained and questioned over alleged “market manipulation.” Gome halted its shares yesterday and didn't say where Huang is or whether it’s in contact with him.

Citigroup Bailout Fuels Wall Street Boon

Finance — Mon, 24 Nov 2008 22:57:46 +0800

Wall Street barreled higher Monday for the second straight session, this time in a relief rally over the government's plan to bail out Citigroup Inc. — a move it hopes will help quiet some of the uncertainty hounding the financial sector and the overall economy. The Dow Jones industrials soared nearly 400 points and the major indexes all jumped more than 4.5 percent.The surge gave the market its first two-day advance since Oct. 30-31 and the Dow's biggest two-day percentage gain since October 1987; the 891-point rise over the two sessions also wiped out an 872-point plunge over the course of Wednesday and Thursday. Although investors sensed late last week that a rescue of Citigroup was forthcoming, investors nonetheless were heartened, even emboldened, by the U.S. government's decision late Sunday to invest $20 billion in Citigroup and guarantee $306 billion in risky assets.Wall Street's enthusiasm grew not only because the bailout answered questions about Citigroup but also b...

U.S. stock futures rise on Citigroup plan

Finance — Mon, 24 Nov 2008 13:40:26 +0800

NEW YORK — Wall Street showed relief early Monday over the government's plan to bail out Citigroup Inc. — a move it hopes will help address some of the uncertainty hounding the financial sector. Stock index futures contracts indicated the market was poised to extend a sharp rally from Friday.

While the markets anticipated late last week that some sort of rescue was likely, investors appeared emboldened by the U.S. government's decision late Sunday to invest $20-billion (U.S.) in Citigroup and guarantee $306-billion in risky assets. The move by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. is only the latest effort this year to support a banking system troubled by bad debt and flagging confidence.

Besides implementing its $700-billion bailout plan for the overall financial industry, the government has bailed out insurance giant American International Group Inc. and taken over lenders Fannie Mae and Freddie Mac.

In...

China shares end 3.7% lower on profit-taking

Finance — Mon, 24 Nov 2008 13:38:06 +0800

Hong Kong stocks fall 1.59% in quiet trading

Finance — Mon, 24 Nov 2008 13:08:13 +0800

Rwanda: Country, China Sign RWF 800 Million Deal

Finance — Mon, 24 Nov 2008 09:02:36 +0800

Posted to the web 24 November 2008

James KaruhangaNyarugenge

Rwanda and China signed an agreement on economic and technical cooperation at the Foreign Affairs Ministry yesterday.

The pact, worth 10 million Chinese Yuan (about Rwf 800 million), is in the framework of the China-Africa cooperation forum, and it is designed to benefit hospitals in Kigali.

GA_googleFillSlot("AllAfrica_Story_Inset");"The assistance from the agreement we have just signed will mainly go into hospitals in Kigali and it will help the country in its path towards development," Rosemary Museminali, Foreign Affairs and Cooperation Minister said.

"Your country, the People's Republic of China has extended important assistance to our nation and we believe there are strong bilateral relations," she told the Chinese envoy.

Ambassador Sun Shuzhong, the Chinese envoy to Rwanda, said that the agreement was an important component of the follow-ups of his country's earlier pledge to Africa - "the ...

Asian Market Roundup Nov. 24

Finance — Mon, 24 Nov 2008 07:45:50 +0800

The Chinese mainland stock markets closed down on Monday.The benchmark Shanghai Composite Index fell 72.33 points, or 3.67 percent, finishing at 1897.06 points.

Yuan Little Changed as China Seeks to Avert Economic Slowdown

Finance — Mon, 24 Nov 2008 06:08:20 +0800

China's yuan was little changed against the dollar on speculation policy makers are keeping the currency trading within a narrow range to aid exporters as recessions take hold in the U.S., Europe and Japan. Waning overseas demand has “adversely affected” industrial production and company earnings, President Hu Jintao said Nov. 21 at the Asia-Pacific Economic Cooperation summit in Lima, Peru. The yuan’s reference rate, fixed daily by the People’s Bank of China to guide the market, has fluctuated no more than 0.04 percent each day this month. “The reference rates give the most obvious evidence that the government wants to keep the yuan at around 6.83,” said Li Tao, a foreign-exchange trader at Shenzhen Development Bank Co. in Shenzhen. “A stable currency would help to pull China out of the economic downturn and retain investors’ confidence.”

StanChart Declines on $3 Billion Rights Issue Report

Finance — Mon, 24 Nov 2008 06:06:08 +0800

Standard Chartered Plc, the third- biggest U.K. bank, fell in Hong Kong after a media report that it plans to raise $3 billion in a rights offer at a 47 percent discount to the current market price to bolster capital. The London-based bank may announce the issue today, the Financial Times reported, without saying where it obtained the information. The offer is expected to be priced at about 400 pence a share, the report said. Fiona Chan, a Hong Kong-based spokeswoman, declined to comment on ``media speculation,'' when called by Bloomberg.

Air China triples losses on hedging contracts

Finance — Mon, 24 Nov 2008 03:50:03 +0800

HK Lehman Probe Threatens Offshore Funds

Finance — Mon, 24 Nov 2008 03:05:52 +0800

The future distribution of European offshore funds in Asia is threatened by a Hong Kong probe into the Lehman Brothers’ minibond scandal. The Hong Kong Monetary Authority, the local regulator, has frozen the authorisation of all new offshore funds, consultants say. “For the past couple of weeks, there has been no product that has been approved in Hong Kong,” says Daniel Enskat, head of global consulting at Strategic Insight. “Everybody is a little bit scared at the moment,” he adds. It is estimated that more than 43,000 investors bought more than $2.6bn (£1.7bn, €2bn) of Lehman minibond investments, retail structured productsthat were distributed by many banks in the city. Tang Tjun, managing director at the Boston Consulting Group in Hong Kong, says: “There are a lot of investors unhappy and that encourages regulators to act.” Investors are demanding their money back and claimaing they were not properly informed of the risky nature...

China economy to grow 8.6 pct in 2009, says Galaxy Securities

Finance — Sat, 22 Nov 2008 12:09:53 +0800

BEIJING, Nov. 22 (Xinhua) -- China's economy is forecast to expand at a slower annual rate of 8.6 percent next year, China Galaxy Securities said in its latest research report on Saturday.

The economy grew 9.9 percent annually in the first three quarters this year, sharply down from 11.9 percent last year. To spur economic growth, China has unveiled a 4 trillion yuan (585 billion U.S. dollars) stimulus package through 2010, cut borrowing costs three times and relaxed credit controls.

The slowing economic growth in the world's fourth-largest economy would make it hard for businesses to achieve higher earnings growth, the report said.

Companies, excluding banks, oil producers, and steel and power sectors where profits move to volatile products prices, are expected to see earnings grow 7 percent in 2009 and 15 percent in 2010.

...

China to issue 3.3-bln-dollar treasury bonds

Finance — Fri, 21 Nov 2008 13:56:42 +0800

The Ministry of Finance (MOF) on Friday said the 22nd batch of book-entry treasury bonds for this year would be issued next week, with a total value of 22.5 billion yuan (3.29 billion U.S. dollars).

The ministry said in a statement the issue period would last from Nov. 24 to 26. The seven-year bonds have a fixed annual yield of 2.71 percent.

Interest will be calculated from Nov. 24 and paid annually. The principal will be paid at maturity.

The issue will bring China's book-entry T-bonds this year to more than 1 trillion yuan.

Chinese shares close 0.72% down amid regional market rebounds

Finance — Fri, 21 Nov 2008 12:22:22 +0800

Special Report: Global Financial Crisis

Chinese Individual Investors Allowed to Trade Gold

Finance — Fri, 21 Nov 2008 07:40:26 +0800

Individual investors were allowed to buy and sell Au99.95-category gold as of Friday at the Shanghai Gold Exchange (SGE), the Shanghai Securities News reported.

China shares close morning trade 4.3% lower(1)

Finance — Fri, 21 Nov 2008 07:25:26 +0800

Special Report: Global Financial Crisis

BEIJING, Nov. 21 (Xinhua) -- Chinese shares ended the morning trade 4.3 percent lower on Friday, as investor sentiment got hard hit by massive sell-off on Wall Street overnight sparked by fears of a deep and prolonged recession.

The benchmark Shanghai Composite Index, which covers both A and B shares, slid 84.95 points, or 4.28 percent, to 1,898.81. It opened 2.65 percent lower at 1,932.60.

Buying interest was becoming weaker after earlier broad market rally and continued declines on regional markets, Everbright Securities said in a research note on Friday.

Overnight the Dow Jones Industrial Average tumbled 444.99 points, or 5.56 percent, to 7,552.29, the lowest level in more than five and a half years.

Other regional markets also tracked Wall Street loss. Hong Kong's Hang Seng Index dropped about 1 percent at noon.

S&P 500 ind...

Haitong Securities Falls as Locked-up Shares Float

Finance — Fri, 21 Nov 2008 02:32:29 +0800

Haitong Securities Co., China's biggest brokerage by market value, tumbled by its 10 percent daily limit in Shanghai trading after about 1.29 billion shares in the company became tradable today. Seven institutional investors, including Youngor Group Co., Huaitai Asset Management Co. and Citic Group, can sell their holdings from today. The locked-up shares the investors bought in a private placement a year ago correspond to about 85 percent of the firm's 1.52 billion publicly traded

China shares open 2.7% lower after Wall Street sell-off

Finance — Fri, 21 Nov 2008 02:10:01 +0800

Special Report: Global Financial Crisis

China arrests 30 over riots in northwest: govt

Finance — Thu, 20 Nov 2008 17:51:54 +0800

BEIJING (AFP) - - Police have arrested 30 people for involvment in a two-day violent protest in northwest China that had to be broken up with tear gas after 74 people were injured.

As calm returned to Longnan in Gansu province, authorities said they had questioned 110 people over the riots during which people threw stones, bricks and bottles to attack police, according to a local government statement.

The statement said 30 people had been detained -- seven of whom have been bailed pending further investigation -- and 80 people had signed confessions.

Protesters burned and smashed local government buildings and destroyed vehicles, said Li Xuechun, the city's deputy Communist Party chief, according to the Xinhua news agency.

Damages are estimated at more than five million yuan (731,000 U.S. dollars), but that number could go higher, he said.

The government said the protest was triggered on Monday by about 30 people whose houses had been demolished to make w...

Hong Kong stocks close 4.04% lower

Finance — Thu, 20 Nov 2008 15:02:55 +0800

Stock Markets Plunge, Oil Trades Below $53

Finance — Thu, 20 Nov 2008 13:59:44 +0800

World stock markets tumbled Thursday, with benchmarks in Tokyo and Seoul losing almost 7 percent each, after recession fears sent Wall Street plunging and Japan suffered its biggest drop in exports in seven years.Pessimism over a looming global recession also drove oil prices to record lows Thursday, with the value of a barrel plunging below $53 for the first time in almost two years.Light, sweet crude for December delivery lost 84 cents to $52.78 a barrel in Asian trade. Overnight, the contract retreated 77 cents to settle at $53.62 a barrel on the New York Mercantile Exchange, the lowest since January 2007.The slide in Asian and European shares extended a global sell-off that accelerated overnight amid lowered projections for U.S. economic activity next year from the Federal Reserve and worries over the fate of America's Big Three automakers, which are pleading for emergency loans from Washington.The uncertainty facing companies around the world was evident after U.S. consume...

Global markets extend rout on recession fears

Finance — Thu, 20 Nov 2008 13:33:49 +0800

HONG KONG — World stock markets tumbled Thursday, with benchmarks in Tokyo and Seoul losing almost 7 per cent each, after recession fears sent Wall Street plunging and Japan suffered its biggest drop in exports in seven years.

The slide in Asian and European shares extended a global sell-off that accelerated overnight amid lowered projections for U.S. economic activity next year from the Federal Reserve and worries over the fate of America's Big Three auto makers, which are pleading for emergency loans from Washington.

The uncertainty facing companies around the world was evident after U.S. consumer prices fell 1 per cent last month, the largest amount in the past 61 years. While beneficial to consumers, lower prices hurt corporate profits and raise the threat of deflation.

The rout continued as trading opened in Europe, where Britain's FTSE 100, Germany's DAX and France's CAC-40 all fell more than 2 per cent early in the session. Oil and other commod...

Chinese shares end 1.67% down with investor confidence restoring

Finance — Thu, 20 Nov 2008 12:24:59 +0800

Special Report: Global Financial Crisis

BEIJING, Nov. 20 (Xinhua) -- Chinese shares dropped 1.67 percent to close at 1,983 points on Thursday despite sharp falls on other global equities markets.

The benchmark Shanghai Composite Index, which covers both A and B shares, fell 1.67 percent to 1,983 points. The Shenzhen Component Index lost 0.25 percent to 6,696 points.

The relatively slighter falls resulted from rising investor confidence over a series of polices taking by the central government to stimulate economic growth, analysts said.

HK shares end down following U.S. and regional slump

Finance — Thu, 20 Nov 2008 12:13:14 +0800

Special Report: Global Financial Crisis

HONG KONG, Nov. 20 (Xinhua) -- Wall Street's plunge to five-year lows overnight was followed by a slump in Asia on Thursday, with Hong Kong's benchmark index ending sharply lower led by HSBC.

The Hang Seng Index fell 517.24 points, or 4 percent, to 12,298. 56 after trading between 11,976.88 and 12,298.56 during the session.

Turnover reached 44.62 billion Hong Kong dollars (5.76 billion U.S. dollars), up from 38.91 billion Hong Kong dollars (5.03 billion U.S. dollars) Wednesday.

Traders said there was some bargain hunting during the session, but caution prevails and they expect the index to retest the trough of 10,676 that was hit Oct. 27.

Regionally, the Nikkei 225 plunged 6.9 percent and the Seoul Composite dropped 6.7 percent after the Dow Jones In...

US treasury bonds 'still the best option'

Finance — Thu, 20 Nov 2008 05:15:24 +0800

China is likely to continue increasing holdings of US treasury bonds even after becoming the No 1 holder because it is the best way to deploy its $1.9 trillion foreign exchange reserves, economists say.