Business

China shares have worst day in 4 months, snap 5-week winning streak

by fm

11th January 2013

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1 min read

China shares posted their worst daily loss in nearly four months on Friday, snapping a five-week winning streak after higher-than-expected December inflation crimped expectations for further monetary easing.

The CSI300 of the top Shanghai and Shenzhen A-shares closed down 1.9% on the day and 1.6% on the week at 2,483.2 Points. The Shanghai Composite Index shed 1.8% on Friday and 1.5% this week.

China's annual consumer inflation rate accelerated to a seven-month high of 2.5% in December on rising food prices, surpassing a 2.3% Reuters poll consensus — although analysts say inflation will stay benign for 2013.

Friday's losses were both indexes' worst since September 20 as investors took profits on property and brokerage counters, whose 2012 outperformance had stretched into the new year.