Asia Pacific stocks slide as China sets out to deepen reforms
City Index November 8, 2012 2:45 PM
<p>The major Asia Pacific stock indices have lost ground as China announced its plans for reforms.</p>
The major Asia Pacific stock indices have lost ground this morning (November 8th), after China's president Hu Jintao said the nation is going to deepen its economic reforms and boost domestic demand to drive fresh growth.
Investors have been fearing a greater-than-expected slowdown in China after its two-decade bull-run, as the nation's export-heavy economy has been badly affected by the ongoing financial crises in key trading partners the eurozone and US, leading to reduced orders.
Opening the Communist Party Congress, Mr Hu said China needs to work towards a more "market-based" exchange rate for the yuan renminbi – the country's currency.
Decision-makers in Beijing have been introducing reforms in its tightly-controlled financial sector, which many analysts say is key to making progress and achieving growth.
At 08:55 GMT today (November 8th), the Hong Kong Hang Seng and Shanghai SSE Composite both retreated, slipping by 2.4 per cent to 21566.9 points and 1.6 per cent to 2071.5 points respectively.
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