Shanghai's key stock index fell this morning as investors showed concern that more tight monetary policies may come out to tame inflation after the central bank yesterday said money supply unexpectedly grew at the fastest pace in 20 months in January.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, lost 1.63 percent, or 74.25 points, to 4,478.07.
Losers in the Shanghai market outnumbered gainers 630 to 187 while six were unchanged.
The Shenzhen Composite Index, which covers the mainland's smaller stock market, shed 1.10 percent, or 15.15 points, to 1,365.97.
Banks were among the decliners this morning.
The Industrial & Commercial Bank of China, the nation's biggest lender, buckled 2.17 percent, or 0.15 yuan (2 US cents), to 6.77 yuan. Pudong Development Bank, the Chinese partner of Citigroup Inc, fell 1.98 percent, or 0.99 yuan, to 49.04 yuan.
China's money supply unexpectedly grew at the fastest pace in 20 months in January. M2, the broadest measure, rose 18.9 percent to 41.78 trillion yuan from a year earlier, the People's Bank of China said.
Shares also fell after China Railway Construction Corp said it would sell equity to the public for the first-time, sapping demand for existing securities.
China Railway Construction, the nation's largest building contractor, said it will begin selling 2.8 billion A shares, or 25.93 percent of its enlarged share capital, to investors from February 25.
Ping An Insurance (Group) Co, China's second-biggest insurer dipped this morning. The insurer said its premium income totaled 14.5 billion yuan in January as the country's economic growth boosted demand. The stock lost 0.13 percent, or 0.10 yuan, to 74.30 yuan.
On the positive side, China United Telecommunications Corp, which controls the nation's second-largest cell phone operator, rose 3.05 percent, or 0.38 yuan, to 12.83 yuan.
The company's Hong Kong-listed unit China Unicom Ltd will adjust call charges to comply with government rules to cut long-distance domestic fees. The adjustments "may have an impact on the revenue of the company," it said yesterday.
China Shipping Development Co increased this morning after it said yesterday that average freight rates will rise about 40 percent this year and it will boost domestic volume seven percent to 89.4 million tons this year from 2007.
The stock gained 1.16 percent, or 0.44 yuan, to finish the morning session at 38.39 yuan.
(Shanghai Daily, February 15, 2008)
