SHANGHAI'S key stock index yesterday fell for a sixth trading day and notched up the longest losing streak in six months after a reading showed China's manufacturing activities weakened sharply in November.

The Shanghai Composite Index lost 0.7 percent to end at 2,395.07 points, capping a six-day, 5.3 percent decline and closing at the lowest level since October 24.

The index has fallen 15 percent so far this year, exceeding last year's 14.3 percent plunge, amid the government's tightening measures.

The HSBC Flash PMI, the earliest available indicator of the industrial sector's operating conditions in China, dropped to a 32-month low of 48 this month, down from the final reading of 51 in October. Weaker domestic and external demand dented the PMI.

Commodity firms and finance-related stocks lost heavily yesterday.

Haitong Securities tumbled 5.2 percent to 8.23 yuan (US$1.29). Ping An Insurance lost 2 percent to 35.60 yuan. Huaxin Cement shed 3.4 percent to 16.25 yuan. Xinjiang Ba Yi Iron & Steel Co eased 3.1 percent to 9.16 yuan.

Sunnier days are not seen for the manufacturing sector after the World Bank projected that the world's second-largest economy may grow at a slower 8.4 percent next year from 9.1 percent this year.

But China International Capital Corp and Shenyin and Wanguo Securities said the market may turn for the better in 2012.

The local index may rise to 3,000 points in the second quarter of next year, Shenyin and Wanguo said.

Source:shanghaidaily