STOCK MARKET WATCH -- Friday, 16 November 2012

[xchrom]

22. China’s Stocks Fall, Dragging CSI 300 to 2009 Low; Sinopec Drops

http://www.bloomberg.com/news/2012-11-16/china-s-stocks-fall-dragging-csi-300-to-2009-low-sinopec-drops.html

China’s stocks fell, dragging the CSI 300 (SHSZ300) Index to the lowest level since 2009, on concern the nation’s new leadership won’t accelerate economic reforms including reducing the dominance of state-owned enterprises.

China Petroleum & Chemical Corp. (600028), an oil refiner known as Sinopec, retreated 2 percent after the government lowered fuel prices for the first time since July. Qingdao Haier Co., the biggest refrigerator maker, dropped to a two-week low after China said it will end subsidies of rural home-appliance sales. China Shenhua Energy Co. led a gauge of energy producers to the third-steepest drop among industry groups.

“The composition of top leaders may indicate that the much-needed reforms such as the break-up of the monopoly of state-owned enterprises will be done in a slow and gradual way,” said Li Jun, a strategist at Central China Securities Co. “The magnitude of the reforms may be weaker than expected.”

The CSI 300, representing the biggest companies in the Shanghai and Shenzhen exchanges, declined 0.8 percent to 2,177.24, the lowest level since March 2009. The Shanghai Composite Index (SHCOMP) slid 0.8 percent to 2,014.73, the lowest close since Sept. 26. The measure last closed below 2,000 in 2009. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies traded in Hong Kong added 0.2 percent. The Bloomberg China-US 55 Index (CH55BN) fell 0.5 percent in New York yesterday.