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» 23/07/2009 [Company watch]
China Aoxing Pharmaceutical Corp. Receives Renewal of GMP Certification for Capsule Dosage Form of Pharmaceutical Products
» 15/03/2010 [Industry news]
Recordati S.p.A And Lee Pharmaceutical Announce Partnership For Zanidip(R) In China
» 26/10/2009 [Finance]
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» 17/08/2009 [Industry news]
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» 07/05/2010 [Industry news]
Hong Kong: Recall of all products manufactured by Quality Pharmaceutical Lab Ltd
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»17/08/2009 [Other]
China Stocks Drop Most in 9 Months, Led by Commodity Suppliers

China benchmark stock index fell the most in nine months as foreign direct investment plunged, Ping An Insurance (Group) Co. profit missed estimates and Yunnan Copper Industry Co. said there are no clear signs of a recovery.

 
By Bloomberg News China benchmark stock index fell the most in nine months as foreign direct investment plunged, Ping An Insurance (Group) Co. profit missed estimates and Yunnan Copper Industry Co. said there are no clear signs of a recovery. Ping An, the nation’s second-biggest insurance company, fell 3.9 percent after first-half net income dropped 45 percent. Yunnan Copper sank the 10 percent daily limit after posting a first-half loss and the metal dropped by the maximum in Shanghai. Foreign direct investment fell 35.7 percent in July as companies stalled expansion plans amid the global financial crisis. The Shanghai Composite Index, tracking the bigger of China’s exchanges, fell 176.34, or 5.8 percent, to 2,870.63 at the close, the worst day since Nov. 18 and the lowest since June 18. The gauge has declined 17 percent from this year’s high on Aug. 4 on concern a slump in exports and new loans will damp economic growth. It remains 58 percent higher this year. “These disappointing earnings from big companies have reaffirmed concerns that share prices have moved ahead of fundamentals,” said Zhang Ling, who helps oversee about $7.21 billion at ICBC Credit Suisse Asset Management Co. in Beijing. “The correction will continue.” The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, declined 6.1 percent to 3,140.27. The Shanghai Composite is still 59 percent off its Oct. 16, 2007 peak, when it tumbled 72 percent to its trough on Nov. 4. About 160 stocks slumped by the 10 percent daily cap on the 897-memember Shanghai index today. It slid 6.6 percent last week, the most since the five days ended Feb. 27, entering a so-called correction after its retreat from this year’s high on Aug. 4 surpassed 10 percent. Shanghai Valuations The Shanghai gauge trades at 31 times the reported profit of its companies, compared with a price-to-earnings ratio of 18 times for the MSCI Emerging Markets Index. “Valuations are at such a stretched level that a correction is overdue,” said Yan Ji, who helps oversee about $850 million at HSBC Jintrust Fund Management Co. in Shanghai. “There may be another 20 percent or 30 percent downside for the index.” Foreign direct investment retreated for a 10th straight month, the commerce ministry said in Beijing today. Prime Minister Wen Jiabao said Aug. 9 the government will maintain its current macroeconomic policy stance aimed at bolstering domestic spending as the nation continues to experience fallout from the global recession. Billionaire Li Ka-shing, who predicted China’s stock-market bubble would burst in 2007, last week said the global economy won’t recover this year and told investors to be “cautious” about buying shares, especially with borrowed money. Ping An Ping An Insurance fell 3.9 percent to 50.56 yuan. The company will refrain from being “really aggressive” in stock investments this year because of market volatility, President Louis Cheung said in an interview with Bloomberg Television today. “There was a small net increase in our total equity allocation in the first half,” Cheung said. “We’re looking forward to almost maintaining the same allocation in the second half.” Yunnan Copper, the nation’s third-biggest producer of the metal, tumbled 10 percent to 29.84 yuan, the most since Oct. 27. The company posted a first-half net loss of 126.3 million yuan ($18 million). Jiangxi Copper Co., China’s biggest producer of the metal, sank 10 percent to 37.37 yuan, trimming its gain this year to 274 percent. Zhuzhou Smelter Zhuzhou Smelter Group Co., the biggest producer of refined zinc, slid the maximum 10 percent to 11.46 yuan as the metal tumbled by its daily cap in Shanghai. Copper for November delivery on the Shanghai Futures Exchange fell by the daily limit of 5 percent to 47,790 yuan a ton. Shanghai zinc also slumped by the maximum. Aluminum Corp. of China Ltd., the nation’s biggest maker of the lightweight metal and also called Chalco, plunged 10 percent to 15.03 yuan. Baoshan Iron & Steel Co., China’s biggest steelmaker, dropped 7.6 percent to 7.44 yuan, the most since November. China Coal Energy Co., the nation’s second-largest coal producer, slumped the 10 percent daily cap to 12.19 yuan even after saying first-half profit rose 3.1 percent. Yanzhou Coal Mining Co., the listed unit of China’s fourth-biggest coal miner, tumbled 10 percent to 18.65 yuan. PetroChina PetroChina Co., the nation’s biggest oil company, slid 6.1 percent to 13.09 yuan, the lowest in almost three months. China Petroleum & Chemical Corp., Asia’s biggest oil refiner, also known as Sinopec, lost 5.8 percent to 12.18 yuan. Crude oil traded near a two-week low in after-hours trading today in New York after sliding 4.3 percent on Aug. 14. SAIC Motor Co., China’s largest carmaker, retreated 8.4 percent to 16 yuan, paring its annual gain to 199 percent. Citic Securities Co., the brokerage unit of China’s biggest investment company, lost 4.6 percent to 31.05 yuan. The company said it posted a 20 percent drop in first-half profit as a suspension in new share sales caused underwriting and investment income to slump. China Vanke Co., the nation’s biggest listed property developer, sank 10 percent to 11.50 yuan. Chairman Wang Shi said home prices may fall if the government tightens monetary policy, China Business News said, citing an interview with Wang. Oceanwide Real Estate Group Co., a property developer, slid the maximum 10 percent to 15.11 yuan, the biggest decline since April 14, 2008, after posting a 29 percent decline in first-half net income and Shenyin & Wanguo Securities Co. cut its rating on the stock to “neutral” from “outperform.” Recent stock market declines may be “overdone” as the government is unlikely to substantially tighten monetary policy, JPMorgan Chase & Co.’s Jing Ulrich said in a Bloomberg Television interview on Aug. 14. --Zhang Shidong. Editors: Reinie Booysen, Linus Chua

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