Aggressive support from the government is needed toavert further declines

Tag : garment stocks
The Shanghai B-share Index fell 1.13 points or 0.68 pct to 164.37,while the Shenzhen B-share Index was up 4.05 points or 1.06 pct at387.10.
Analysts said a lower-than-expected consumer inflation reading forJuly of 6.3 pct provided some support to the market, although a 10pct surge in producer price data, released yesterday, means thatinflation pressures continue to hang over China's economy.
CPI growth decelerated from 7.1 pct in June, while the PPI readingwas the highest since 1996.
'Some investors were seeking bargains, although sentiment remainedmuch weaker in the overall market, as seen from the thin turnover,'said a Shanghai-based analyst who asked not be identified.
Turnover linked to the composite index fell sharply to 31.06 blnyuan from 41.51 bln in the previous session.
'The Shanghai market was hit more severely due to the slowdown inthe yuan's appreciation against the dollar, causing capital to flowout,' the analyst noted.
He added that aggressive support from the government is needed toavert further declines.
In Shanghai, garment maker Haixin Group (SHB 900917; SHA 600851)tumbled 9.76 pct to 0.342 usd, while Hainan Airlines (SHB 900945;SHA 600221) shed 5.31 pct to 0.481 usd. Huaxin Cement (SHB 900933;SHA 600801) lost 8.04 pct to 1.430 usd after sliding by the 10 pctdaily limit yesterday.
Huangshan Tourism Development (SHB 900942; SHA 600054) gained 2.88pct to 1.142 usd and Shanghai Lujiazui Finance & Trade ZoneDevelopment (SHB 900932; SHA 600663) rose 1.89 pct to 1.135.
Zhenhua Port Machinery (SHB 900947; SHA 600320), the heaviestweighted stock on the Shanghai B-share market, was up 2.43 pct at1.096 usd.
In Shenzhen, Shenzhen Chiwan Wharf Holdings (SZB 200022; SZA000022) jumped 3.86 pct to 10.49 hkd and Shandong Chenming PaperHoldings (SZB 200488; SZA 000488; HK 1812) was up 1.46 pct at 6.26hkd.
Property firm Hainan Pearl River Holdings (SZB 200505; SZA 000505)rose 1.32 pct to 2.30 hkd, while China Merchants PropertyDevelopment (SZB 200024; SZA 000024) advanced 3.37 pct to 8.89.
China Vanke (SZB 200002; SZA 000002), the country's top propertydeveloper by market value, was flat at 7.79 hkd, off a low of 7.25.
The FTSE/Xinhua China B 35 Index was up 24.49 points or 0.42 pct at5,866.05.