The China stock market has finished lower now in back-to-back sessions, retreating nearly 200 points or 7 percent along the way. The Shanghai Composite Index fell through support at 3,100 points, although now investors are looking forward to a firm recovery at the opening of trade on Monday.
The global forecast for the Asian markets calls for a modest recovery following deep losses on Friday related to debt problems reported in Dubai. Commodities also plunged on the news, but now may see a modest recovery along with the markets as the United Arab Emirates central bank has sought to reassure investors. The European markets were sharply higher on Friday, while the U.S. bourses ended significantly lower - and now the Asian bourses are tipped to tick to the upside.
The SCI finished sharply lower on Friday, reacting to the Dubai credit concerns - dragged sharply lower by heavy selling among the financials.
For the day, the index plunged 74.72 points or 2.4 percent to finish at 3,096.27 after trading between 3,080.89 and 3,169.76. The Shenzhen Index lost 34.07 points or 2.9 percent to finish at 1,137.65.
Among the decliners, Citic Securities shed 3.5 percent, while Ping An Insurance lost 4.3 percent and Zijin Mining Group plunged 7.7 percent.
The lead from Wall Street remains sharply negative as stocks saw significant weakness during trading on Friday, with traders expressing concerns about the financial crisis in Dubai. The major averages all ended the day firmly in negative territory, although well off their worst levels of the day.
Stocks moved sharply lower at the open as traders reacted to news that Dubai World, the main investment arm of Dubai, has requested to postpone payment on nearly $60 billion in debt. The news raised concerns about the potential impact of a default by the company.
The news contributed to substantial weakness in the Asia-Pacific markets that carried over into the U.S. markets. Light volume on Wall Street amid a holiday-shortened session may have helped to exaggerate the extent of the downward move.
Among individual stocks, financial services giant ING (ING) showed a notable decline after the company priced its 7.5 billion euro rights issue at a nearly 40 percent discount. ING said it would issue 1.77 billion shares at 4.24 Euros each.
Selling pressure waned not long after the open, however, and the major averages staged a notable recovery attempt over the course of the morning.
While the major averages moved well off their lows for the session, they still ended the day sharply lower. The Dow closed down 154.48 points or 1.5 percent at 10,309.92, the NASDAQ fell 37.61 points or 1.7 percent to 2,138.44 and the S&P 500 closed down 19.14 points or 1.7 percent at 1,091.49. For the holiday-shortened week, the Dow and the NASDAQ posted modest losses, while the S&P 500 was nearly unchanged. The Dow fell 0.1 percent for the week, while the NASDAQ lost 0.4 percent.
In corporate news, Sands China Ltd., a subsidiary of casino operator Las Vegas Sands Corp. said Friday that through one of its subsidiaries, it secured project financing commitments of $1.75 billion. The amount would be used to complete the first two phases of construction of the company's largest integrated resort on the Cotai Strip in Macau, it added.
Sands China said the $1.75 billion financing reflects an additional $300 million of commitments secured since the company originally announced the receipt of commitments for the financing of the project.
Also, China XD Plastics Company Ltd. said Friday that it has entered into a private placement agreement with several institutional and individual investors to sell an aggregate 15,188 shares of convertible preferred stock, resulting in aggregate gross proceeds of about $15.2 million. The private placement is expected to close on or around December 1.
Finally, China Wind Power International Corp. posted second-quarter net loss of C$2.7 million, wider than C$0.3 million in the same quarter last year. The company reported second-quarter loss per share of C$0.057.
The larger net loss was attributable to expenses stemming from the Company's public listing activities; share-based compensation; and an increase in wages and salary as both the Chief Executive Officer and Senior Vice President started to earn salary after the Company listed on the TSX Venture exchange in August of 2009.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.