By Xinhua
Beijing : China’s share prices tumbled 4.5 percent Tuesday as investors panicked at news that the country’s consumer price index (CPI), the marker of inflation, rose by 6.5 percent in August, the highest monthly rise in 11 years.
The benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 5,113.97 points on Tuesday, down 241.32 points.
“The market correction was necessary as share prices had risen too fast and there has been some bad news for the market recently,” said Yang Chengzhang, chief economist at Shenyin & Wanguo Securities.
More than 1,400 out of the total 1,664 stocks dipped, with banks and property developers leading the downward spiral.
The heavyweight Industrial and Commercial Bank of China went down 5.6 percent, the Bank of China decreased 4.4 percent and Vanke Group, China’s No.1 property developer by market value, dropped five percent.