Stocks in Shanghai fell for a third straight trading day today
due to a broad sell off of shares in the banking and property
sectors on concerns the central bank may raise interest rates for a
sixth time this year to cool economic growth.
The Shanghai Composite Index, which tracks both yuan-denominated
A shares and hard-currency B shares, was down 0.87 percent, or
46.45 points, to 5,269.82 at 3pm today.
But the Shenzhen Composite Index, which covers the smaller
mainland stock market, gained 1.22 percent, or 15.78 points, to
1,303.75.
Among the stocks on the Shanghai Composite Index, 683 rose, 92
fell and 72 were unchanged.
Real estate developers and banks were bearish today on
speculation the government may raise interest rates as well as the
amount of capital lenders have to set aside in reserves to curb the
booming economy. Higher interest rates make loans such as mortgages
more expensive, discouraging house purchases.
China Vanke, the nation's biggest listed property developer,
slid 3.99 percent, or 1.37 yuan (18 US cents), to 32.93 yuan.
Poly Real Estate Group Co, China's second-largest developer by
market value, plunged 8.42 percent, or 6.74 yuan, to 73.26 yuan
while Gemdale Corp, a Chinese developer that's partnered with ING
Groep NV, slumped 4.69 percent, or 2.47 yuan, to 50.24 yuan.
Shanghai Pudong Development Bank Co fell 3.90 percent, or 2.06
yuan, to 50.80 yuan. China Minsheng Banking Corp, the nation's only
non-state bank, declined 2.46 percent, or 0.40 yuan, to 15.89
yuan.
China's consumer price index matched its decade high rise of 6.5
percent in October and the trade surplus widened to a record of
US$27.05-billion last month.
The People's Bank of China this month raised the proportion of
deposits that lenders must set aside as reserves to 13.5 percent,
the highest since at least 1987.
Gold and copper producers continued to be gloomy after metal
prices slumped.
Zhongjin Gold, China's No. 1 listed gold miner by market value,
fell 5.12 percent, or 5.21 yuan, to 96.61 yuan. Shandong Gold
Mining Co, the second-largest publicly traded gold producer, lost
2.76 percent, or 4.08 yuan, to close at 143.49 yuan.
Jiangxi Copper, the second-largest producer of the metal, was
down 2.17 percent, or 1.11 yuan, to 49.98 yuan.
Copper stocks dropped as prices of the metal traded near an
eight-month low in Shanghai and global inventories rose to their
highest level since April.
Inventories monitored by the London Metal Exchange were up four
percent last week to 179,650 tons, the highest since April 4.
Copper for January delivery rose as much as two percent to
59,390 yuan a ton on the Shanghai Futures Exchange before falling
as much as 0.5 percent.
Elsewhere, China Life Insurance Co, the world's biggest insurer
by market value, booked 170.1 billion yuan in premiums during the
first 10 months of this year, according to a statement to the
Shanghai Stock Exchange. The insurer didn't provide year-earlier
figures. China Life lost 4.12 percent, or 2.69 yuan, to 62.66
yuan.
(Shanghai Daily November 19, 2007)
