Shanghai shares hit four-week low on commodities drop

The Shanghai Composite Index fell 4.7% to a four-week low of 3,112.72 points as commodity stocks suffered in response to a decrease in metals prices and freight rates, Bloomberg reported. The fall also followed comments from the Ministry of Commerce that domestic demand would be unable to overcome the negative effects of weak export demand in the short term. After reporting a lower profit in the first half, Zhuzhou Smelter, China’s largest producer of refined zinc, saw its stock fall 4.9%. Shipping firm China Cosco Holding’s stock fell 4.1% as the Baltic Dry Index slipped 2.5% in response to an anticipated decrease in Chinese demand for iron ore. Jiangxi Copper, which has quadrupled its share price this year, fell 5.7%. The falls come despite renewed interest in the market by retail investors. China’s household savings fell in July as a nine-month moratorium on IPOs was lifted and individual investors raided their savings to buy into equities.