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China stocks dive to 8-month low as pessimism grows

Chinese stocks slumped to an eight-month low Thursday on growing concerns over declining commodity prices and policymakers’ efforts to cool the real estate sector, AP reported. The benchmark Shanghai Composite Index saw its lowest close of 2,739.7 since Sept. 3, losing 4.1% or 117.45 points. Meanwhile, the Shenzhen Composite Index fell 3.7% to 1,088.31. "There is only bad news in the market these days… Investors are pessimistic," said Zhang Fan, an analyst for Debon Securities in Shanghai. Shares for Poly Real Estate Group (600048.SH), China’s second-biggest developer, fell 6.7% to RMB10.66 (US$1.56), while its rival China Vanke (000002.SZ) slid 4.1% to RMB7.18 (US$1.05). Meanwhile, Sinopec (Sinopec; SNP.NYSE, 600028.SH, 0386.HK) dropped 5.6% to RMB9.33 (US$1.36), PetroChina (PTR.NYSE, 601857.SH, 0857.HK) retreated 5.1% to RMB11.31 (US$1.65), and China Shenhua Energy (601088.SH, 1088.HK) – the country’s biggest coal producer – dove 5.9% to RMB24.3 (US$3.55).

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