18 Nov 2010

Shanghai stock exchange falling

10:16 am on 18 November 2010

The Shanghai stock exchange has fallen nearly 10% in four days on fears of more interest rate rises in response to rises in the price of food.

The Shanghai composite index ended Wednesday down a further 1.9%, having fallen more than 4% on Friday and again on Tuesday.

The BBC reports inflation rose to 4.4% in October, with food prices rising 10.1%.

The People's Bank of China raised rates unexpectedly in October in response to growing inflation pressures.

Inflation is now at its highest level in two years. It was 3.6% in September.