China's Stocks Drop to Seven-Month Low


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 CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 190.10, or 4.1 percent, to 4,431.59 at the close, the lowest since Aug. 1.

Equities also fell on concern the government will raise interest rates to tame accelerating inflation.

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, dropped 3.6 percent to 4,146.30. The Shenzhen Composite Index fell 3.7 percent to 1,319.01.


TradingEconomics.com, Bloomberg
3/10/2008 7:28:48 AM