China Stocks Fall for 5th Day


China stocks fell for a fifth day, the longest losing streak in 10 weeks, as higher fuel and raw material costs pared earnings at industrial and transportation companies.

Offshore Oil Engineering Co., which lays undersea pipes and tests oilfield equipment, plunged by the daily 10 percent limit for a second day after first-half profit slumped 33 percent on higher costs and bad weather. China Eastern Airlines Corp., the country's third-largest carrier, sank after reporting first-half profit fell 29 percent as it paid more for jet fuel. China Shipping Container Lines Co. slid after first-half earnings dropped 45 percent.

The CSI 300 Index, which tracks yuan-denominated shares on the nation's two exchanges, lost 6.24, or 0.3 percent, to 2,325.29 at the close, the lowest since Aug. 18. Nine of the 10 industry groups fell. The measure has retreated for the most consecutive days since a 10-day drop ending June 17.

The stock benchmark has fallen 56 percent this year, the biggest decline among 89 global indexes tracked by Bloomberg, on concern government measures to combat inflation will erode profit.


TradingEconomics.com, Bloomberg
8/27/2008 5:26:45 AM