China Stocks Fall to 13-Month Low After Industrial Profits Slide
- Industrial companies' profits retreat 4.7% in December
- Strategists, technical analysts point to 2,500 as bottom
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China’s stocks fell to a 13-month low as slumping industrial companies’ profits increased concern the economic slowdown is deepening.
The Shanghai Composite Index dropped 0.5 percent to 2,735.56 at the close, extending Tuesday’s 6.4 percent plunge. Airlines and power producers led declines after industrial profits slumped 4.7 percent last month and analysts said a weaker yuan could further hurt earnings of companies with dollar debt. The benchmark gauge pared a loss of as much as 4.1 percent after PetroChina Co., long considered a favorite holding of state-linked rescue funds, jumped the most in three weeks. Net buying of Shanghai shares through the Hong Kong exchange link was poised for the highest daily total since September.