▶ TTT - Freitag, 01.02.2008

China Shares Sharply Lower By Midday;

Bad Weather A Concern

--China's shares are sharply lower Friday with investors cutting their positions as long holidays draw closer, amid concerns the economic impact from heavy snowfalls this winter may be larger than initially expected.

At the midday break the benchmark Shanghai Composite Index, which tracks both A and B shares, has fallen 3.6% to 4227.95. Analysts put support for the index at the psychologically important 4000 level in coming days.

The Shenzhen Composite Index is 5.2% lower at 1242.77.

"The market is speculating that Beijing will set a relatively lower target for 2008 gross domestic product growth at the National People's Congress in March due to the severe snow, which will cut earnings forecasts for listed companies," said Wang Junqing, an analyst at Guosen Securities. Severe weather conditions across the country, with some areas suffering their worst snowfall in more than a decade, have led to transport chaos and disrupted supplies of food and fuel.

Snow and ice have also snapped power lines, leading to energy shortages. The China Meteorological Administration has forecast that storms will continue through this weekend, leading into next week's long Lunar New Year holidays, when many Chinese travel to visit their families.

Snowfall is expected to hit four central and eastern provinces, with parts of Hunan, already among the worst stricken, to see more than 15 millimeters (1/2 inch) over a six-hour period, the provincial weather bureau there said.