Chinese shares lower in morning trade

October 27, 2007 - 0:0

SHANGHAI (AFP) -- Chinese share prices fell 0.91 percent in Friday morning trade, following the previous day's sell-off amid continued jitters over potential tightening moves to brake the surging economy, dealers said.

They said investors remained worried that a fresh round of austerity measures, such as an interest rate hike, might be around the corner after the nation announced 11.5 percent economic growth in the third quarter.
The anxiety prompted prices on the key Shanghai composite index to fall 4.80 percent Thursday.
At the same time, tighter liquidity due to PetroChina's subscription, which started Thursday, continued to weigh on the market as investors had reduced their holdings to raise cash for the PetroChina offer.
""The market continued to consolidate,"" said Wu Dazhong, an analyst at Shenyin Wanguo Securities.
However, financial stocks outperformed the market, helped by stronger-than-expected earnings from Ping An Insurance and Industrial and Commercial Bank of China (ICBC), dealers said.
Ping An said third-quarter net profit surged 347.5 percent year-on-year to 3.6 billion yuan (476 million US dollars).
ICBC reported a 76 percent rise in third-quarter net profit to 22.46 billion yuan and announced Thursday it would take a 20 percent in South Africa's largest lender, Standard Bank, for nearly 5.5 billion dollars.
The Shanghai Composite Index, which covers both A and B shares, was down 50.46 points at 5,511.94.
The Shanghai A-share Index fell 53.28 points or 0.91 percent to 5,786.59 and the Shenzhen A-share Index lost 13.67 points or 0.95 percent to 1,427.59.