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BIZCHINA / Center |
Index tumbles 131 points due to bank, property losses(Xinhua)
Updated: 2007-12-17 15:46 Chinese share prices fell sharply Monday continuing last week's decline, with financial and property stocks leading the slump. Analysts said investors dumped banking and property shares in anticipation of further economic cooling measures being released by the central government. The government said at the conclusion of the 2007 Central Economic Work Conference on December 5 that it will adopt a "tight" monetary policy in 2008, a shift from a prudent approach it has followed for the last ten years. Since then, the government has imposed stronger curbs on lending and mortgage loans. The benchmark Shanghai Composite Index, which covers both A and B shares, plunged 131.15 points, or 2.62 percent, to finish at 4,876.76. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange fell 364.53 points, or 2.21 percent, to 16,118.97. The Hushen 300 Index, which accounts for 60 percent of the nation's stock market value, dropped 120.36 points, or 2.42 percent, to 4,857.29. Gainers led losers by 457 to 310 in Shanghai and 367 to 199 in Shenzhen.The combined turnover of the Shanghai and Shenzhen bourses expanded to 151.56 billion yuan ($20.59 billion) from 122.41 in the previous session. China's share price slump echoed losses in Hong Kong. The benchmark Hang Seng Index fell 967.06 points, or 3.51 percent, to close at 26,596.58 on concerns that the Federal Reserve will have limited room to cut interest rates after the stronger-than-expected inflation data. Banks and property developers led the decline. Industrial Bank tumbled 7.67 percent to 46.86 yuan. Heavyweights Industrial and Commercial Bank of China was down 4.01 percent to 7.67 yuan and Bank of China was down 3.24 percent to 6.27 yuan. China Vanke, the nation's largest listed property developer, plunged 9.52 percent to 27.10 yuan. Poly Real Estate was down 6.82 percent to 56.85 yuan. Qin Hong, an analyst at Bohai Investment, said investors have realized that the profit growth of property developers will slow down with the tightening measures. Steel shares were also among the heavy losers. Baoshan Iron and Steel, the nation's largest iron producer, fell 3.02 percent to 15.74 yuan. Oil giant PetroChina, which accounts for nearly a quarter of the total weight of the benchmark index, dropped 1.83 percent to 29.99 yuan. Rises in consumer stocks, however, cushioned the slump. They posted strong gains for two consecutive days as the New Year holiday and Spring Festival, approach. Beijing Xidan Department Store rose 4.74 percent to 13.70 yuan following its rise of the ten-percent daily limit on Friday. Suning Appliance Co, China's second largest appliance retail chain, climbed 5.72 percent to 68.35 yuan.
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