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Shares drop 1.78% in morning trade on dampened economic prospect

(Xinhua)
Updated: 2008-12-16 13:48

Chinese shares drop 1.78 percent in the morning as unfavorable figures dampened prospect of China's economy.

A major profit decline in China's State-owned firms, combined with the reported slowdown in money supply growth, both released later on Monday, pulled down the benchmark Shanghai Composite Index by 35.02 points in the morning to 1929.36. China's Shenzhen Component Index slipped 0.59 percent to 7059 points.

China's State-owned enterprises (SOEs) directly under the central government reported a sharp profit decline of 26 percent to 683 billion yuan ($99.7 billion) in the first 11 months this year, figures released Monday showed.

Central bank report revealed China's money supply grew at a slower-than-average pace in November on decreased incomes and weakened demand.

The growth of M2, the broad measure of money supply covering cash in circulation plus all deposits, slowed for the sixth straight month, according to the People's Bank of China, the central bank.