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Chinese shares drop 1.2% in morning trade

(Xinhua)
Updated: 2009-01-13 13:56

Chinese share prices dropped 1.2 percent before noon break on Tuesday, tracking overnight decline on the Wall Street and amid concerns over grim economic data.

The benchmark Shanghai Composite Index closed the morning trade down 22.69 points at 1,877.66. It opened down 19.48 points, or 1.03 percent, at 1,880.87.

Gains in auto and steel stocks offset the decline. The auto sector gained 1.66 percent and the steel sector rose 0.95 percent as Tuesday's media reports said the government would unveil more measures to boost the two sectors.

But investors remained cautious ahead of the economic data release this and next week.

Exports dropped 2.8 percent year-on-year in December, declining for a second month in a row for the first time in a decade, media reports said.

The trade data is expected to be officially released as early as Tuesday.

Overnight, the Dow Jones Industrial Average slumped 125.21 points, or 1.46 percent, to 8,473.97.