Sector Snap: Asian ADRs drop as China shares sink

Asian ADRs lower after China markets drop to 3-month low in Asian trading

• On 4:08 pm EDT, Monday August 31, 2009

NEW YORK (AP) -- U.S.-traded shares of Asian companies slid Monday following a big sell-off in China's benchmark index.

In China, the benchmark Shanghai Composite Index on Monday dropped 192.94 points, or 6.7 percent. to 2,667.75, its lowest close in more than three months. The Shenzhen Composite Index of China's second, smaller exchange tumbled 7.2 percent to 904.14.

Investors are wary of a tightening in bank lending, which helped propel Chinese shares more than 80 percent higher earlier in August. State media reports said bank lending dropped in August from July.

The Chinese government also said last week that it will try to cut overcapacity and excessive investment in some sectors.

The Bank of New York Mellon's Asian ADR Index fell 1.5 percent in afternoon trading. An American depositary receipt, or ADR, is a stock that trades in the U.S. but represents shares of a foreign corporation.

Many energy companies, Chinese services providers and Asian blue chips took a hit in late afternoon trading.

51job Inc., a human resources services provider in China, fell 47 cents, or 3.6 percent, to $12.70; marketing company Acorn International fell 23 cents, or 6.2 percent, to $3.51; Aluminum Corp of China Ltd. dropped 93 cents, or 3.4 percent, to $26.47; Chinese Internet search company Baidu Inc. fell $10.69, or 3.2 percent, to $328.84; Japanese camera giant Canon Inc. fell $1.35, or 3.4 percent, to $38.12; telecom China Mobile Ltd., the world's largest by number of subscribers, fell $1.14, or 2.3 percent, to $49.14; China Southern Airline Co. lost 74 cents, or 4.6 percent, to $15.50; Honda Motor Co. slid 72 cents, or 2.2 percent, to $31.29; Toyota Motor Corp. shed $1.07, or 1.2 percent, to $85.19; Indian IT services provider Infosys Technologies Ltd. fell $1.04, or 2.4 percent, to $43.19; solar-energy manufacturers LDK Solar Co. fell 30 cents, or 3.2 percent, to $8.94 while Yingli Green Energy Holding Co. fell 35 cents, or 3.2 percent, to $10.67; electronics giant Panasonic Corp. slipped 11 cents to $15.95; Chinese oil refiner Sinopec Shanghai Petrochemical fell $1.74, or 3.9 percent, to $42.66; Yanzhou Coal Mining Co. fell 54 cents, or 3.7 percent, to $13.97.

Buzz up!