By Zhang Shidong
Feb. 24 (Bloomberg) -- China’s stocks declined to the lowest level in more than two weeks, led by commodities producers and financial companies, on concern the global recession will curb demand for raw materials and erode profits.
PetroChina Co. and China Petroleum & Chemical Corp., the nation’s biggest oil producers, slumped more than 4 percent after crude prices dropped. Baoshan Iron & Steel Co. retreated 5.6 percent after UBS AG said global steelmakers have raised output too quickly. Citic Securities Co. tumbled 9.8 percent on concern that recent gains were excessive relative to earnings prospects.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 105.12, or 4.6 percent, to 2,200.65, the lowest close since Feb. 6. More than five stocks dropped for each that rose. The decline pared the gauge’s 2009 advance to 21 percent.
“Stocks have risen too fast and I don’t think fundamentals have really caught up,” said Wu Kan, a fund manager in Shanghai at Dazhong Insurance Co., which manages the equivalent of about $285 million.
The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, lost 4.5 percent.
To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net
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