China stocks drop after government lowers growth target

Mainland China share market closed down on Thursday, 05 March 2015, as shareholders elected to take profits after China cut its growth target for 2015, with the shares of utilities, materials and resources, energy and financial companies leading the retreat. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, declined 34.80 points, or 0.98%, to 3496.34, while the Shanghai Composite Index dropped 31.06 points, or 0.95%, to 3248.48.

The Chinese Premier Li Keqiang lowered China's gross domestic product growth target to around 7% for 2015 from its level of "around 7.5%" for last year, as he presented the government work report at the opening of China's annual parliamentary session on Thursday. The new official benchmark comes after China's economy expanded 7.4% in 2014, its slowest pace in nearly a quarter century. The Chinese premier also tipped 2015 consumer inflation of around 3% and expects a budget deficit of 2.3% of GDP.

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