SHANGHAI, June 26: China’s main stock index sank for the fifth consecutive trading day on Monday, closing down 0.1 percent as investors continued to evacuate from equities in the face of worsening prospects for a global economic recovery.
‘Markets are still waiting for a clear roadmap for Europe,’ said Fan Cheuk Wan, Credit Suisse Private Banking head of Asia-Pacific research.
Despite expecting policy easing to support a rebound in Chinese equity markets in the second half of 2012, Fan added she did not expect a ‘strong and imminent rebound’ because it would take a while for investors’ confidence to return as Europe was unlikely to improve dramatically.
Investors are also concerned by signs of slowing growth
In China. Domestic manufacturing activity has contracted for eight consecutive months and exports are slowing. Economic growth is widely expected to have slid for the sixth straight quarter in April through June, and annual growth targets look increasingly at risk.
The benchmark Shanghai Composite Index closed at 2,222.1 points. It set a new five-month low for the second day in a row when it touched an intra-day low of 2,203.9.
Trading volume was muted, logging only 52,941 transactions, the lowest level since Jan. 31.
The CSI300 index, which tracks China’s largest listed firms, slightly outperformed the wider index, falling by 0.07 percent. (AGENCIES)
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