Shanghai shares slip on fears of worsening eurozone debt crisis

Business?| ?Securities

By Ye Zhen??|?? 2012-6-19??|?? ??ONLINE EDITION

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SHANGHAI stocks ended lower today after Spanish 10-year bond yields rose 7.29 percent yesterday, fueling fears that the euro zone debt crisis is deepening.

The benchmark Shanghai Composite Index lost 0.66 percent, or 15.26 points, to close at 2300.8 points. Turnover was 57.9 billion yuan (US$9.2 billion) at the trading close.

Spanish borrowing costs hit a euro-era record high yesterday when its 10-year bond yields surged 41 basis points to 7.29 percent. It's considered too pricy for a nation that is deep in debt.

Credit ratings agency Moody's Investors Service lowered Spain's sovereign rating from A3 to Baa3 after Eurozone leaders agreed on a deal to provide Spanish banks a bailout worth more than 100 billion euros (US$124.9 billion).

Environmental products companies fell most in Shanghai trading. Beijing Capital Co, a firm specialized in sewage treatment, lost 2 percent to 5.11 yuan; Tianjin Capital Environmental Protection Group Co shed 2.4 percent to 5.72 yuan.

Property developers were bearish as home prices declined in more Chinese cities in May. China Vanke, the nation's biggest developer, fell 1.4 percent to 9.06 yuan; Poly Real Estate, the second largest developer, retreated 2.2 percent to 11.73 yuan; and Gemdale Corporation slumped 3.3 percent to 6.83 yuan.

Lenders were mixed. The Industrial and Commercial Bank of China, the nation's largest lender, shed 0.3 percent to 3.94 yuan; China Construction Bank added 0.22 percent to end at 4.51 yuan.

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