CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

China stocks plummet at midday Monday after U.S. credit downgrade

08-08-2011 13:47 BJT

BEIJING, Aug. 8 (Xinhua) -- Chinese shares plummeted at midday Monday following the United States' loss of its top-tier AAA credit rating from Standard & Poor's.

The benchmark Shanghai Composite Index tumbled 3.68 percent to 2,529.88. The Shenzhen Component Index slip 2.97 percent to 11,354.42.

The shares opened 1.03 percent lower on Monday morning and hit a year low of 2,497.92 during the morning trade as investors began panic selling.

The financial crisis seemed far from being coming to an end and the negative effect of the U.S. fiscal stimulus polices are emerging, said an analyst with Guotai Jun'an Securities.

Rating agency Standard & Poor's on Friday cut the U.S. debt rating to AA+ with a negative outlook for the first time.

Official figures show that the U.S. economy slowed to an annual growth rate of 1.3 percent during the second quarter of the year, far short of market expectations of 1.7 percent. Meanwhile, the nation's manufacturing purchasing managers' index for July fell to 50.9 percent with the new orders index plunging to a six-month low.

The unencouraging economic data stoked concerns about the strength of the U.S. economic recovery.

Other Asian markets also dropped in reaction to the downgrading. Hong Kong's Hang Seng tumbled 4 percent to 20,109.49 and Japan's Nikkei 225 stock average was down 1.3 percent to 9,178.03 by its midday close.

Editor:Wang Xiaomei |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program