Shanghai Daily: Business - shanghaidaily.com
CHINA'S main stock index tumbled below the 5,000 mark yesterday on a steep drop of heavyweights amid sagging investment confidence and sluggish overseas markets. The benchmark Shanghai Composite Index, which tracks both yuan-backed A shares and hard-currency B shares, shed 4.41 percent to 4,984.16 yesterday. The turnover further shrank to 64.73 billion yuan (US$8.74 billion) from the previous day's 65.96 billion yuan. Trading value has dipped for two days running. The slump of the Shanghai market, the main market on the Chinese mainland, also pushed the index to a three-month low since August 22. The selling sentiment also enveloped the Shenzhen market, the mainland's smaller stock market, where the Shenzhen Composite Index fell 4.61 percent, or 27.58 points, to 1,253.28 yesterday. "The lack of investment confidence is the main reason for the drop," said She Minhua, a China Securities Co analyst. "This correction will prevail for two to three months before the