China's Stocks Plummet 4.27% to 14-Month Low Tuesday

Chinese shares plummeted 4.27 percent to a 14-month low Tuesday on concerns capital will flow to the initial public offering of the Agricultural Bank of China (ABC).

The ABC said late Monday it will offer 59.51 billion shares in Shanghai at between 2.52 and 2.68 yuan ($0.37 to $0.39).

The IPO will raise up to $23.2 billion, making it the world's largest listing ever.

The Shanghai Composite Index lost 4.27 percent, or 108.23 points, to end at 2,427.05 points, the lowest since April 2009.

The Shenzhen Stock Index dropped 5.03 percent, or 503.15 points, to 9,508.91 points.

Total turnover hit 136.68 billion yuan, up from 90.85 billion yuan the previous trading day.

Losers outnumbered gainers by 854 to 14 in Shanghai and 950 to 20 in Shenzhen.

Coal stocks dipped on concern that coal producers' profits will be clipped after the National Development and Reform Commission, the nation's top economic planner, ordered the industry Friday to keep prices stable despite strong demand. [ The NDRC decree is a move to manage inflation expectations.]

China Shenhua Energy Co., the nation's largest coal producer, retreated 4.14 percent to 22.13 yuan while China Coal Energy Co., the nation's second-largest coal producer, slid 4.42 percent to 8.66 yuan.

Non-ferrous metals posted widespread losses with Jiangxi Copper Co., the nation's biggest copper producer, fell 7 percent to 25.52 yuan. Zijin Mining Group Co., China's biggest gold producer, dropped 6.39 percent to 6.3 yuan.

(Xinhua News Agency June 29, 2010)