Petrochemical shares are badly oiled

SHARES fell yesterday on the back of lower petroleum and petrochemical shares which were hit by the slump in oil prices.

The Shanghai Composite Index tumbled 0.85 percent to close at 2,632.24 points. The smaller Shenzhen Component Index also dropped 0.69 percent to 7,908.55 points and the CSI 300 index ended 1 percent lower at 3,204.94 points.

Stocks of petroleum and petrochemical companies such as Zibo Qixiang Tengda Chemical Co tumbled by the daily limit of 10 percent. China Petroleum Engineering Co and Xin Fengming Group Co both lost over 5 percent.

Food and beverage shares also fell. Jiajia Food Group Co, Guangdong Jialong Food Co and Jiangsu Yanghe Brewery Joint-Stock Co all dropped by more than 3 percent.

Meanwhile, the Shanghai Stock Exchange convened a meeting with heads of major investment banks and securities brokers to discuss the new technology innovation board.

The first batch of around 20 high-tech enterprises are expected to list on the new technology innovation board in the first quarter of 2019.

Companies to be listed on the board will be audited by the Shanghai Stock Exchange, approved by the China Securities Regulatory Commission, with the IPO pricing open.

“It is an important measure for Shanghai to better serve the overall national reforms and development,” Shanghai Mayor Ying Yong said.