Domestic stocks were little changed in the morning session today. Property developers and banks were down slightly over concern that the country's central bank may take more steps to rein in booming economic growth.

 

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, inched down 0.05 percent, or 2.87 points, to hit 5,409.82 at 11:30am today.

 

The Shenzhen Composite Index, which covers the smaller mainland stock market, lost 0.54 percent, or 7.07 points, to 1,312.38.

 

Among the stocks on the Shanghai Composite Index, 218 rose, 543 fell and 85 were unchanged.

 

Real estate developers and lenders were down on worries the central bank will raise borrowing costs for a sixth time this year to rein in economic growth as new figures are expected to show factory and property spending are on the rise. The figures are to be released at 10 am tomorrow.

 

China Minsheng Banking Corp, the nation's only privately controlled lender, retreated 1.25 percent, or 0.21 yuan (3 US cents), to 16.58 yuan.

 

Industrial & Commercial Bank of China, the nation's biggest listed lender, dipped 0.36 percent, or 0.03 yuan, to 8.32 yuan.

 

Beijing Bank lost 2.07 percent, or 0.42 yuan, to 19.90 yuan.

 

Higher borrowing costs make loans more expensive, cutting into demand for property.

 

Poly Real Estate Group Co, China's second-largest developer by market value, fell 2.47 percent, or 2.14 yuan, to 84.67 yuan while China Vanke, the biggest publicly traded real estate developer by market value, edged down 0.56 percent, or 0.20 yuan, to 35.80 yuan.

 

But gold and copper producers gained in the morning session.

 

Tongling Nonferrous Metals Group Co, China's biggest copper producer, jumped 2.81 percent, or 0.71 yuan, to 25.99 yuan while Jiangxi Copper Co, the second-largest, jumped 2.17 percent, or 1.13 yuan, to 53.28 yuan.

 

Copper jumped 6.1 percent to almost US$3.30 a pound in New York yesterday, the biggest single-day jump in 16 months, after an earthquake rocked Chile, the world's largest producer of the metal.

 

Gold shares also rose on news demand for the metal rose 19 percent in the third quarter, led by a seven-fold increase in investment in exchange-traded funds backed by bullion, the producer-funded World Gold Council said.

 

Zhongjin Gold Corp, the nation's largest publicly traded gold miner by market value, rose 0.67 percent, or 0.73 yuan, to 109.20 yuan. Shandong Gold Mining Co, its No. 2 listed gold producer, added 1.64 percent, or 2.54 yuan, to 157.10 yuan.

 

(Shanghai Daily November 15, 2007)