Editorial Summary

The Shanghai Composite Index decreased 5.5 percent to close at 3,413.9 on Wednesday, while the Shenzhen Composite Index decreased 4.01 percent to close at 1044.2. Trading volume on the Shanghai and Shenzhen Stock Exchanges reached RMB 81.2 billion and RMB 40 billion, respectively.

Airline stocks crashed on Wednesday with China Eastern Airlines (600115.SH, 0670.HK, NYSE: CEA), Southern Airlines (600029.SH, NYSE: ZNH), and Air China Ltd. (601111.SH, 0753.HK) experiencing respective declines of 9.97 percent, 9.81 percent and 7.64 percent. The same day, Air China released its annual report with revenue of RMB 49.7 billion, up 14.58 percent year-on-year, and net profit of RMB 3.88 billion, up 30.37 percent year-on-year.

Despite all the declines, shares of Zhenhua Portal Machinery Co., Ltd (600320.SH) soared 10 percent on its annual report. Zhenhua Portal Machinery recorded revenue of RMB 21.01 billion and net profit of RMB 2 billion in 2007, up 22.9 and 24.8 percent year-on-year, respectively.