China shares extend losses on Wall St tumble, oil spike; key index down 6 pct
China shares extended losses in the afternoon amid a regional slump triggered by steep falls on Wall Street and a spike in oil prices.
Dealers said the local market is also getting hit by worries over new initial public offerings (IPOs).
At 2:39 pm, the benchmark Shanghai Composite Index was down 176.51 points or 6.08 pct at 2,725.34.
The China Securities Regulatory Commission (CSRC) said yesterday that it will review IPO plans of China South Locomotive & Rolling Stock Corp and Everbright Securities Co next week.
Meanwhile, inflation worries and negative news from financial and automotive sectors sent the Dow Jones Industrial Average down more than 3 pct overnight to its lowest level in nearly two years.
Light, sweet crude rose as high as 140.39 usd per barrel last night after OPEC president Chakib Khelil was quoted as saying that oil could rise to between 150 usd and 170 usd this summer.
Airlines and oil firms were sharply lower following the oil price jump.
Air China (SHA 601111; HK 0753) fell 9.48 pct to 8.02 yuan.
PetroChina (SHA 601857; HK 0857), the biggest index component, was down 3.99 pct at 14.92 yuan.
China Vanke (SZA 000002; SZB 200002), the country’s top property developer by market value, declined 8.41 pct to 8.93 yuan.
Tags: CSRC, inflation, IPO, oil-prices, PetroChina, Shanghai-Composite-Index