China's Stocks Drop to Seven-Month Low; Sinopec Leads Decline
March 10 -- China's stocks fell to the lowest in seven months after the U.S. unexpectedly lost jobs in February, raising concern a recession in the world's biggest economy will reduce demand for local exports.
China Petroleum & Chemical Corp. fell by the most in two weeks. China Railway Construction Corp., builder of more than half the nation's rail links since 1949, had the worst-performing mainland trading debut since 2006.
``The world economic outlook is gloomy and certainly going to take a toll on equities,'' said Zhang Ling, who manages the equivalent of $1.1 billion with ICBC Credit Suisse Asset Management Co. in Beijing.
The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 156.01, or 3.4 percent, to 4,465.68 as of 1:25 p.m. local time, set for the lowest since Aug. 2.
China Petroleum, Asia's biggest oil refiner, also known as Sinopec, lost 0.81 yuan, or 5 percent, to 15.37, set for the biggest decline since Feb. 22. Gree Electric Appliances Inc., China's largest maker of home air-conditioners, fell 1.83 yuan, or 3.4 percent, to 52.02.
Baoshan Iron & Steel Co., China's biggest steelmaker, lost 0.53 yuan, or 3.4 percent, to 15.07. China Cosco Holdings Co., Asia's largest container line, fell 1.84 yuan, or 4.9 percent, to 35.43.
China Railway Construction
U.S. payrolls fell by 63,000, the most in five years, after a revised decline of 22,000 in January, the Labor Department said on March 7. Economists had estimated payrolls to rise by 23,000.
China Railway Construction rose 27 percent from its offer price to 11.56 yuan. Twenty companies tripled on the first day of trading in Shanghai and Shenzhen this year on the average, according to data compiled by Bloomberg.
Equities also fell on concern the government will raise interest rates to tame accelerating inflation.
Consumer prices rose to an 11-year high of 7.9 percent in February from a year earlier as snowstorms disrupted food supplies, according to the median estimate of economists surveyed by Bloomberg News, after gaining 7.1 percent in January. The statistics bureau will release the figure at 10 a.m. tomorrow.
The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, dropped 3 percent to 4,170.30. The Shenzhen Composite Index fell 2.8 percent to 1,330.84.
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