Shares slide as growth in industrial profits falls
Shanghai stocks fell Monday after data showed industrial profit growth slowed in September from August.
The Shanghai Composite index lost 2.18 percent to close at 2,542.10 points.
Coal and consumer stocks were among the biggest decliners. The consumer sector dropped 4.83 percent; coal producers fell 3.25 percent.
China’s industrial profit growth more than halved last month to 4.1 percent year on year from 9.2 percent in August. For the first nine months of this year, profits of industrial enterprises rose 14.7 percent — 1.5 percentage points lower than the first eight months, according to data from the National Bureau of Statistics released on Saturday.
Sentiment was also weak after Kweichow Moutai Co, the country’s top liquor producer, fell by the daily limit of 10 percent after it reported slower profit growth in the third quarter.
Qin Hong, of Jingbailing Consulting, said liquor stocks fell mainly due to the slowdown in business growth.
Other distillers also slumped Monday. Hebei Hengshui Laobaigan Liquor Co lost 9.85 percent to 13 yuan (US$1.87) and Shanxi Xinghuacun Fen Wine Factory Co declined 9.99 percent to 31.46 yuan.