Chinese shares fall

Beijing, Oct 21 (IANS) China’s stocks fell on Wednesday, with the benchmark Shanghai Composite Index tumbling 3.06 percent for the whole day to close at 3,320.68 points.

The Shenzhen index fell 5.87 percent to close at 10,915.99 points, Xinhua news agency reported.

The ChiNext Index, which tracks China’s NASDAQ-style board of growth enterprises, plummeted 6.63 percent to end at 2,344.74 points.

More than 800 stocks fell by the 10 percent daily limit on Wednesday, while around 20 rose to the 10 percent restriction.

Total turnover on the Shanghai and Shenzhen bourses stood at 1.17 trillion yuan (about $185 billion), the first time in two months the amount has exceeded one trillion yuan, indicating investors were taking profits made over the last few days.

The Shanghai Composite Index had increased 7.6 percent in the seven trading days before Wednesday’s fall.

Li Shaojun, chief analyst with Minsheng Securities, said the market needed to correct itself following the gains.

“I believe a mid-term rebound in the stock market will not change in anticipation of further pro-growth measures and liquidity injections,” said Li.

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