Shanghai down 50% from October peak

22 April 2008

The Shanghai Composite Index on Tuesday dropped to 50% below its October record, Bloomberg reported. The index, which covers all 862 companies on the Shanghai exchange, dropped by 1.5% to 3,069.49 in early trading. Yunnan Chihong Zinc & Germanium Co fell by the daily limit after saying it would reduce metal production, and shares of Zhuzhou Smelter Group fell after the firm reported lower profits. The falling index reflects mounting concern among investors about the worsening economic situation, particularly inflation, according to analysts. The Shenzhen Composite Index also lost 2.2% in early trading, while the CSI 300 Index, which tracks both Shanghai and Shenzhen, fell by 1.8%.