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Stock index dragged down 3.64% by bank shares

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-05-15 16:01

Of the few rising shares, airlines and chemical fiber makers were strong. Jiangxi Hongdu Aviation Industry saw its price hike 10 percent to 34.22 yuan. Shanghai Aerospace Automobile Electromachenical gained 2.2 percent. While Jilin Chemical Fiber, Nanjing Chemical Fiber and Xinxiang Chemical Fiber were the top gainers lifting the chemical fiber sector.

Analysts believe that price adjustments around the milestone 4,000 point is inevitable. And the qualified foreign institutional investors (QFII) take short-side of the market. QFIIs are now selling shares to reduce holdings, said CLSA, a leading brokerage.

However, experts say, it is highly likely that individual stocks may have a come back in the coming days, because today's long-side news haven't take bite.

The China Securities Regulatory Commission and the two exchanges are finalizing a report for their coordinated research project. The product of the project, the Report on Stock Market Assessment and Equity Bubble Investigation is expected to be released, is likely to conclude that there is no apparent sign of bubble prevailing in the market, according to sources involved in the program. In addition, of the 451 companies that have made projections for their half-year results, 249 predicted profit growth, accounting for more than 55 percent of the total.