FT: - Chinese steelmakers saw their profits plunge by 96 per cent in the first half compared to a year ago, a Chinese official said on Tuesday, as the economic slowdown turned the industry into a “disaster zone”.
And it doesn't look like the situation is getting any
better. In spite of the recent pop in the manufacturing
PMI number, key indicators are pointing to a continuing
slowdown. The Index of Leading Indicators hit a post-2009
low today,
China National Bureau of Statistics Leading Indicators Index, 1996=100 |
... and so did the equity market. China's major cyclical sectors that depend so heavily on double digit growth are in trouble.
Shanghai Stock Exchange Composite Index |
Bloomberg: - China’s stocks fell to the lowest level in more than three years amid concern the slowing economy will hurt earnings growth. Foreign-currency denominated B shares dropped for their biggest two-day loss in almost a year.
Chinese steelmakers, including Baoshan Iron & Steel Co. and Angang Steel Co., slid after posting a 96 percent drop in first- half profit. Kama Co. led declines by B shares on concern stricter rules by the exchange may lead to companies being delisted.
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