The Shanghai key stock index has fallen nearly 42 percent this year, the world's second-worst performer among 90 benchmarks tracked by Bloomberg News Service, on concern government measures to keep price increases in check will erode earnings. Inflation accelerated to 8.5 percent in April, close to the fastest in almost 12 years.
China Vanke, the nation's biggest listed property developer, slid 10 percent to 17.70 yuan. Poly Real Estate Group Co, China's second-largest developer by market value, also dropped the daily cap of 10 percent to 15.94 yuan.
Air China, the world's biggest airline by market value, dropped 10 percent to 10.99 yuan. China Southern Airlines Co, the nation's biggest carrier by fleet size, dropped 9.95 percent to 9.32 yuan. Shanghai-based China Eastern Airlines slumped 10 percent to 9.06 yuan. Jet fuel accounted for about 40 percent of Chinese airlines' costs in 2007, according to annual reports.
Crude oil in New York jumped US$10.75, the most ever, to a record of US$138.54 a barrel on June 6. It recently traded at US$134.93 a barrel in after-hours trading.
The surging oil price also hurt oil refiners. Chinese oil refiners cannot raise prices of their products to pass rising costs onto customers, unless they have government approval.
China Petroleum & Chemical Corp, Asia's biggest oil refiner, dropped 8.39 percent to 12.34 yuan. PetroChina Co, the nation's second-biggest refiner and the biggest market heavyweight, lost 6.06 percent to 16.13 yuan.
(Shanghai Daily June 10, 2008)
