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Chinese shares down 0.61% on Christmas Day

(Xinhua)
Updated: 2008-12-25 16:28

Chinese equities extended losses on Thursday, falling 0.61 percent in thin trading.

The benchmark Shanghai Composite Index shed 0.61 percent, or 11.38 points, to 1,852.42. The Shenzhen Component Index fell 60.56 points, or 0.88 percent, to 6,785.04.

Combined turnover shrank to 64.83 billion yuan ($9.26 billion) from 75.6 billion yuan the previous day. Losses outnumbered gains by 487 to 347 in Shanghai and 378 to 343 in Shenzhen.

Despite government moves to boost domestic consumption and foreign trade, investor confidence remained weak and many were on "stand-by", analysts said.

Nevertheless, the home appliance sector rose on news that the State Council, China's cabinet, approved to raise export tax rebates of some mechanical and electrical products. Little Swan and Meiling Appliances both rose by the daily limit of 10 percent.

Energy-related shares such as PetroChina retreated on concerns about shrinking demand as the world economy weakened, while agriculture-related stocks were up over government measures to support the rural economy. Heilongjiang Agriculture Co Ltd climbed 1.97 percent to 11.9 yuan.

China Pacific Insurance floated another 1.58 billion shares on Thursday and ended the day with 10.48 yuan, slightly down 1.87 percent

Airline shares reversed Wednesday's upward trend. Air China lost 2.59 percent to 4.13 yuan. Hainan Airlines shed 4.68 percent to 3.26 yuan.

This sector rose the previous day buoyed by news that Hainan Airlines got a 500 million yuan capital injection from the Tianjin municipal government. Investors were betting on more government actions to aid the sector, analysts said.