Chinese shares tumbled amid domestic demand concerns

Source: Dukascopy Bank SA

Hong Kong shares plunged on Tuesday amid worries that China's economic slowdown will weight on domestic demand. However, speculation that the PBOC will announce stimulus measures provided slight support for Chinese equities. The Hang Seng Index tumbled by 1.18% to end Tuesday's session at 20,052.29. Only two in ten industries included in the index rose. The top-gainer was consumer services company, Sands China, as gaming industry in Macau is seen to expand rapidly in the next months. The worst performers were basic materials and telecommunications. Aluminum Corp China and China Coal declined by 2.06% and 3.72%. The NDRC increased a target of total coal production for 2012 by annualized 3.7% compared to a 8.6% growth target last year. Lenders also moved lower, with Bank of China and Bank of East Asia tumbling by 0.66% and 0.85%.

 

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