China's Shanghai Composite Index falls 4.5 percent

China's Shanghai Composite Index falls 4.5 percent : Chinese shares fell sharply Friday on heavy selling of airlines and other market heavyweights, as investors and analysts puzzled over why expectations of a rally linked to the Beijing Olympic games never materialized. The benchmark Shanghai Composite Index sank 4.5 percent, or 122.81 points, to 2,605.16. The Shenzhen Composite Index of China's smaller, second market dropped 5.6 percent to 747.34. Airlines plunged, with flag carrier Air China losing the daily maximum 10 percent to close at 8.69 yuan. PetroChina sank 2.3 percent to 14.61. Since China's stock markets hit their peak and turned southward nearly 10 months ago, the Beijing Olympic games have been one of the few bright spots on an otherwise bleak horizon. Analysts and investors alike pinned hopes on Beijing's... [read full story]