Chinese airports tumble as China stock market weakens

Airport shares worldwide were weaker yesterday, led by Chinese airports, amid concerns that the world’s third largest economy’s government-stimulated growth may not be unsustainable.

The Shanghai Composite Index registered its biggest fall since Jun-2009 yesterday, down 6.7%, sending Shanghai-listed Xiamen, Guangzhou Baiyun and Shanghai airports’ shares plummeting 7.0%, 6.4% and 6.4%, respectively. Shares in Shenzhen, Beijing and Hainan Meilan airports were also weaker, down 5.5%, 5.3% and 3.9%, respectively.

The ripple was felt elsewhere in the Asia Pacific region with Macquarie Airports’ shares falling 1.5%, while Airports of Thailand fell a further 2.7% yesterday. Australia Infrastructure Fund went against the trend, continuing to rise (+4.0%) amid reports that it plans to sell its stake in Australia Pacific Airport Corp, owner of Melbourne Airport.

Selected airports daily share price movements (% change): 31-Aug-2009