Shanghai stocks dropped this morning led by blue chips among
airlines, banks and heavy industry.
The Shanghai Composite Index, which tracks yuan-denominated A
shares and hard-currency B shares, was down 0.86 percent, or 42.55
points, to 4,915.49 at 11:30am today.
Losers in the Shanghai market outnumbered gainers 473 to 288
while 84 were unchanged.
But the Shenzhen Composite Index, which covers the smaller
mainland stock market, was virtually flat and inched up to 1,302.27
from yesterday's 1,302.25.
Airlines suffered a broad sell-off and led losses this morning
in the market, erasing gains yesterday due to a stronger yuan.
Air China, the world's biggest airline by market value, lost
5.17 percent, or 1.33 yuan (18 US cents), to 24.42 yuan while China
Eastern, the nation's third-largest carrier, shed 5.53 percent, or
1.06 yuan, to 18.11 yuan.
Heavyweights in the industrial sector also contributed to the
market's loss this morning.
Sinopec, the country's biggest refiner, slid 2.36 percent, or
0.52 yuan, to finish the early session at 21.55 yuan while
PetroChina buckled 1.24 percent, or 0.38 yuan, to 30.15 yuan.
China may not subsidize oil refiners this year to compensate
them for state-controlled fuel prices, National Development and
Reform Commission Vice-Chairman Zhang Xiaoqiang said in Beijing.
Zhang said it was his personal opinion.
Meanwhile, lenders and developers were mixed this morning. The
government may introduce more tightening measures after home prices
rose last month at the fastest pace since August 2005.
Industrial and Commercial Bank of China, the biggest lender in
China by market value, lost 2.22 percent, or 0.18 yuan, to 7.92
yuan.
But China Merchants Bank rose 1.34 percent, or 0.50 yuan, to
37.91 yuan.
China Vanke, the nation's largest publicly traded property
developer, edged up 0.24 prcent, or 0.07 yuan, to 29.47. Financial
Street, a Beijng developer, slipped 0.86 percent, or 0.22 yuan, to
25.39 yuan.
Home prices in 70 major cities in China rose 10.5 percent in
November from a year earlier, after gaining 9.5 percent in October,
according to a transcript of remarks by Cao Changqing, director of
pricing at the National Development and Reform Commission posted on
the government's Website. That was the biggest increase since
records began in August 2005.
The government has raised interest rates five times this year
and ordered banks to set aside 14.5 percent of deposits as reserves
from December 25, the highest proportion in a decade, to prevent
the economy from overheating.
China may impose a property tax as early as next year, the
Shanghai Securities News reported Wednesday.
(Shanghai Daily December 14, 2007)
