Shanghai stocks drop nearly 5 per cent

Shanghai stocks MarketsBeijing - Shares in China's main stock market index fell nearly 5 per cent Wednesday after a 3-per-cent drop Tuesday with analysts blaming profit taking and investor uncertainty.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, lost 4.72 per cent of its value, or
109.58 points, to close at 2,209.86.

The smaller Shenzhen Composite Index also plunged 4.06 per cent to close at 707.03.

The sell-off was apparently partly inspired by advice from an HSBC analyst on Tuesday that a recent stock market rally was not sustainable until next month's National People's Congress, which is expected to announce more measures to stimulate the economy, the Shanghai Daily said.

The Shanghai index had grown by 25 per cent this year before Tuesday's fall.

Major metal producers and oil firms lost heavily in Shanghai Wednesday and Tuesday amid falling global commodity prices, the newspaper said.

Shares in four of China's biggest banks also lost 4 to 6 per cent. (dpa)

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