Chinese shares tumble 4.56% on Wall Street woes

Special Report:Global Financial Crisis　

A stock holder looks at the electronic

board of share prices at a securities exchange in Shanghai, China, on Feb.

24, 2009. The benchmark Shanghai Composite Index closed at 2200.65, down

4.56 percent, and the Shenzhen index closed at 8403.02, down 3.72 percent

on Tuesday. (Chinese media/Pei Xin)
Photo

Gallery

BEIJING, Feb. 24 (Chinese media) -- Chinese share prices

tumbled 4.56 percent Tuesday, as fears of economic downturn loomed and

confidence was dampened by Wall Street's overnight fall to its worst finish

since 1997.

The benchmark Shanghai Composite Index, which covers

both A and B shares, fell 4.56 percent, or 105.12 points, to 2200.65.

The Shenzhen Component Index on the smaller Shenzhen

bourse was down 3.72 percent, or 324.68 points to 8403.02.

Total turnover stood at 250.4 billion yuan (36.66

billion U.S. dollars).

Losers led gainers by 768 to 172

in Shanghai and 691 to 116 in Shenzhen.

A stock holder stands in front of the

electronic board of share prices at a securities exchange in Shanghai,

China, on Feb. 24, 2009.(Chinese media/Pei Xin)
Photo Gallery

Analysts said Wall Street's plunge and the Central

Bank's warning of rising economic pressure due to possible inflation- led to the

escape of capital flow.

The financial sector still led the losses as the

world financial system had not shown any signs of recovery.

China Merchants Bank dropped 6.5 percent after it

announced Monday night that 4.799 billion non-tradable shares would be unlocked

for trading as of next Monday.

Citic Securities, Northeast Securities, and

Changjiang Securities all fell by nearly 10 percent.

The gold sector, however, did alright. Zijin Mining

Group Co.,Ltd., the country's largest gold producer, and Zhongjin Gold Co.,

Ltd., saw share prices rise 6.35 percent and 5.06 percent to settle at 9.54 yuan

and 57.94 yuan, respectively.

The auto sector also recorded gains driven by the

country's stimulus plan to rejuvenate the auto industry.

Hunan Changfeng Motors, Harbin Dongan Auto Engine,

and Weichai Power, rose by 6.47 percent, 10.07 percent and 3.4 percent.

The Chongqing-based Chang'an Auto, Ford Motor's

Chinese partner, surged by the 10-percent daily limit for the 7th consecutive

day, after the company announced it would buy back as much as 117-million U.S.

dollars worth of B shares on the Shenzhen bourse.