China stocks drop shows global recovery far from assured

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Updated July 29, 2009 20:44:15

The success of the world's largest share offering so far this year has failed to stop China's stock markets losing ground. Shares in China State Construction Engineering Corporation jumped by 70 per cent during its first day of trading as a public company in Shanghai. The earlier initial public offering raised 50 billion yuan (more than US$7 billion) in a sign of investor confidence in China's economic recovery. But the Shanghai stock market overall lost five per cent on the day, and Hong Kong dropped by three per cent.

Presenter: Karon Snowdon, finance correspondent
Speakers: Manop Sangiambut, deputy head, China research with CLSA, Shanghai; David Taylor, analyst, CMC Markets

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