NEWS | Wednesday, 14 May 2008

Shanghai shares fall after quake

China’s key stock market has slipped, despite efforts to minimise economic disruption caused by the massive earthquake which has hit the country.
The Shanghai Composite Index fell 1.8% to 3,560.24 on Tuesday, even though trading was suspended in more than 60 firms based in the quake-struck area.
The quake, which has killed at least 12,000 people, shut eight power plants and eight transformer substations.
Toyota was among Japanese firms based in the worst-affected Sichuan region. The carmaker said it had halted operations on a temporary basis.
Despite the devastation, analysts have predicted that the earthquake’s impact on the broader economy will be less significant than the problems caused by the snowstorms which swept much of southern and central China in January and February.
“The Sichuan earthquake, although significant in magnitude, will not likely hamper China’s economy or listed companies’ earnings on a large scale at the market level,” said an analyst for Morgan Stanley.