Rail crash leads to equity fall

Stock prices for railway firms linked to Hong Kong and China declined on Monday, after a weekend train crash left 39 dead and hundreds injured, Reuters reported. Trading on four Shenzhen-listed stocks related to China’s high-speed rail network – Qingdao TGOOD Electric (300001.SZ), Beijing Century Real Technology (300150.SZ), Beijing Jiaxun Feihong Electrical (300213.SZ) and Chongyi Zhangyuan Tungsten (002378.SZ) – were suspended after requests by the firms. Credit Suisse analysts said that developments in cities along the new high-speed rail network may suffer in the short term, dampening property prices. The benchmark Shanghai Composite Index experienced its biggest single-day trading loss in six months, falling 3% both on fears of fallout from the railway crisis and further domestic credit tightening.”People are just very nervous right now,” said Zhang Qi, an analyst with Haitong Securities. “That probably explains why the market reaction is so exaggerated today.”