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China's railway stocks slump

Updated: 2011-07-26 15:37

By Ben Yue (chinadaily.com.cn)

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Stocks in China's railway companies suffered a slump Monday after a Saturday train crash, China Securities Journal reported Tuesday.

The report said 33 A-share railway stocks lost 31.63 billion yuan ($4.89 billion) in market value in a single day -- six of them declined to its daily down limit.

The trade volume of CNR and CSR, the two major high-speed train producers, jumped 642 percent and 505 percent compared to the previous market day. These two companies together lost more than 10 billion yuan on Monday.

Analysts said the poor performance of railway stocks has hurt institution investors' interests, including 21 funds which hold CNR and CSR shares.

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