CHINA: Cement Makers Lead Losers On Chinese Indices

The Shanghai Composite Index dropped 0.33 percent or 8.22 points to close at 2,470.52 points today on transaction value of 50.14 billion yuan.

The Shenzhen Component Index was down 1.61 percent or 176.47 points to close at 10,778.43 points today on transaction value of 45.63 billion yuan.

Both bourses opened lower as a result of the slump in European markets. The Shenzhen bourse hit a new one-year low, while the Shanghai index is approach the 2,437 points level it reached last month.

The average August CPI growth estimate of 22 chief economists from 22 foreign and domestic financial institutions was 6.1 percent.

CICC maintained its 2011 GDP estimate of 9.2 percent. It lowered its 2012 growth estimate by 0.3 percentage point to 8.4 percent.

Led by Chongqing Brewery (600132, 66.73, -5.508%), Jiugui Liquor (000799, 22.28, -4.827%) and Beijing Yanjing Brewery (000729, 15.67, -3.569%), brewers and spirits makers fell today. 

Cement makers, the biggest losers yesterday, continued their bearish performances. The top losers from this sector today were Anhui Conch Cement (600585, 18.69, -5.223%), Tangshan Jidong Cement (000401, 15.85, -4.518%) and Huaxin Cement (600801, 19.65, -4.146%).

Some of the automobile-related companies fell today. Jiangsu Pacific Precision Forging (300258, 31.44, -9.991%), Hubei Aviation Precision Machinery Technology (002013, 20.25, -6.811%) and Harbin Dongan Auto Engine (600178, 8.66, -5.767%) recorded losses.

Financials posted a mixed performance today as some borkerages posted gains, while others companies fell. Anxin Trust and Investment (600816, 21.19, +1.436%), Sinolink Securities (600109, 21.19, +1.436%) and Shaanxi International Trust (000563, 12.26, +0.905%) outperformed.

Industrial and Commercial Bank of China (601398, 4.07, -0.245%), Bank of China (601988, 2.92, -0.341%) and Bank of Communication (601328, 4.64, -0.429%) traded lower.

Gold companies posted gains. Shandong Gold Mining (600547, 47.89, +0.991%), Zhongjin Gold (600489, 27.53, +0.916%) and Zijin Mining Group (601899, 5.34, +2.692%) rose.

A brokerage estimates that 16.7 billion yuan worth of state-owned assets will be injected into listed companies, with the pace of restructuring to pick up in late 2011. This led to the outperformance of some Shanghai-based companies, such as Shanghai Cimic Tile (002162, 9.79, +10.00%), Shanghai Tianchen (600620, 4.96, +5.53%) and Shanghai Lansheng Corporation (600826, 12.3, +3.97%).