Lower GDP Whomps China
China's mainland indices suffered their worst one-day fall in nearly three months as China announced its GDP growth eased to 11.5% in the third quarter vs. a record 12% in the second quarter of 2007.
Beijing also announced that inflation rose by 4.1% over the same period last year, climbing 20 basis points from the January to August period.
The Shanghai Composite -- the mainland's benchmark index -- plunged 280 points, or 4.8%, on the news, to 5,562.39 points.
Investors in other Asian markets were relaxed however, with most other indices gaining. In neighboring Hong Kong, the Hang Seng rose 520 points, or 1.78%, to 29,854 points, on expectation of a potential Federal Reserve rate cut."The growth [in China] is still tremendous although very, very, high," says Peter Haimes, investment director at Aberdeen Asset Management in Singapore. "When you have over 10% growth it's insignificant unless you see a sharp slowdown, and that doesn't seem to me to be happening " The market gains in Hong Kong vs. the mainland Chinese losses continue the end of last week's trend, when dual-listed companies saw diverging performances on both exchanges. While shares in China Life Insurance (LFC) tumbled 2.45% in Shanghai, to 69.22 yuan, in Hong Kong they lost just 0.5%, to HK$51.20. Similarly, Aluminum Corp of China (ACH) plummeted 5.6% in Shanghai, to 47.10 yuan, while in Hong Kong the stock lost 2.8%, to HK$22.90.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV