Related News
Shanghai stock market plunges 2.63%
By Hu Xiaocen |
March 14, 2012, Wednesday
|
Online Edition
Online Edition
SHANGHAI stocks plunged on slumping property developers after Premier Wen Jiabao said home prices are still at "far from reasonable" levels.
The Shanghai Composite Index tumbled 2.63 percent, or 64.56 points to 2,391.23, the biggest loss in percentage since December 1. Turnover stood at 170.7 billion yuan (US$26.9 billion), hitting an 11-month high. Property stocks plunged 4.69 percent on average at the close of trade.
"Now I can clearly tell you that housing prices are far from reasonable. Therefore, the controls can not be relaxed," Wen said in press conference this morning.
He Xu today, analyst at Goldstate Securities, said: "It's like the market is waiting for a red light. Investors expectation of government's fine-tuning policies for the property market has failed."
He was pessimistic about the market performance for April. "The index can hardly get back to 2,500 points in the month."
Property developers retreated on Wen's statement. China Vanke Co, the nation's biggest listed property developer tumbled 2.7 percent to 8.29 yuan. Poly Real Estate slumped 3 percent to 11 yuan. Gree Real Estate lost 2.83 percent to 6.19 yuan.
However, Bank Julius Baer, a traditional private bank based in Zurich, Switzerland, remained positive on China's capital market in 2012.
"We expect a rally of China's A-shares. Shanghai Composite Index may test 2,600 to 2,700 points within this year under the optimistic case assumptions," said Alan Lam today, the bank's greater China equity analyst.
"We see relative outperformance of A-shares to Hong Kong equities in the medium term on attractive valuations and high sensitivity to policy change," Lam said.
The Shanghai Composite Index tumbled 2.63 percent, or 64.56 points to 2,391.23, the biggest loss in percentage since December 1. Turnover stood at 170.7 billion yuan (US$26.9 billion), hitting an 11-month high. Property stocks plunged 4.69 percent on average at the close of trade.
"Now I can clearly tell you that housing prices are far from reasonable. Therefore, the controls can not be relaxed," Wen said in press conference this morning.
He Xu today, analyst at Goldstate Securities, said: "It's like the market is waiting for a red light. Investors expectation of government's fine-tuning policies for the property market has failed."
He was pessimistic about the market performance for April. "The index can hardly get back to 2,500 points in the month."
Property developers retreated on Wen's statement. China Vanke Co, the nation's biggest listed property developer tumbled 2.7 percent to 8.29 yuan. Poly Real Estate slumped 3 percent to 11 yuan. Gree Real Estate lost 2.83 percent to 6.19 yuan.
However, Bank Julius Baer, a traditional private bank based in Zurich, Switzerland, remained positive on China's capital market in 2012.
"We expect a rally of China's A-shares. Shanghai Composite Index may test 2,600 to 2,700 points within this year under the optimistic case assumptions," said Alan Lam today, the bank's greater China equity analyst.
"We see relative outperformance of A-shares to Hong Kong equities in the medium term on attractive valuations and high sensitivity to policy change," Lam said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
