Related News
China stocks drop on inflation concerns
By Feng Jianmin |
November 10, 2010, Wednesday
|
Online Edition
Online Edition
SHANGHAI'S stock market fell, led by blue chips on fears for another interest hike after China's central bank yesterday surprised the market by auctioning its one-year bills at a higher yield than last week. Small caps outperformed.
The benchmark Shanghai Composite Index lost 0.6 percent, or 19.6 points, to close at 3,115.4 Turnover was 248.9 billion yuan (US$37.5 billion), slightly lower than yesterday's 250.3 billion yuan.
The Shenzhen Component Index, which tracks the smaller domestic market in southern China, was almost unchanged at 13,705.7 points.
The People's Bank of China auctioned 32 billion yuan of one-year bills at a yield of 2.3437 percent, up from 2.2913 percent last week. It was seen as an effort to drain liquidity from the market on concerns about large amounts of inflow of cash into the financial system. Official announcement for October's Consumer Price Index, a measure of inflation, is due tomorrow.
"The central bank's act indicated that CPI in October may be higher than expected, probably exceeding 4 percent," said Li Xunlei, an analyst with Guotai Junan Securities. "From previous experiences, a rise in yield of one-year bills is usually followed by an interest rate hike for deposits."
Elsewhere, the US dollar continued to strengthen against euro, leading to a dip of gold, oil and basic metal prices on the global markets.
The blue chips declined. Aluminum Corp of China lost 0.9 percent to 12.51 yuan. Zijin Mining Co, China's biggest gold producer, dropped 1.7 percent to 10.30 yuan. Baoshan Iron & Steel Co declined 2 percent to 7.27 yuan.
Property developers extended previous losses after China's top statistics bureau said home prices in 70 cities rose 8.6 percent from last month, the slowest growth this year, while transaction areas dropped 11.2 percent. Home prices have been posting slower year-on-year growth for six consecutive months.
China Vanke shed 3.7 percent to 9.15 yuan. Gemdale Corp fell 3.7 percent to 6.57 yuan. Poly Real Estate Co tumbled 4.6 percent to 13.80 yuan.
The benchmark Shanghai Composite Index lost 0.6 percent, or 19.6 points, to close at 3,115.4 Turnover was 248.9 billion yuan (US$37.5 billion), slightly lower than yesterday's 250.3 billion yuan.
The Shenzhen Component Index, which tracks the smaller domestic market in southern China, was almost unchanged at 13,705.7 points.
The People's Bank of China auctioned 32 billion yuan of one-year bills at a yield of 2.3437 percent, up from 2.2913 percent last week. It was seen as an effort to drain liquidity from the market on concerns about large amounts of inflow of cash into the financial system. Official announcement for October's Consumer Price Index, a measure of inflation, is due tomorrow.
"The central bank's act indicated that CPI in October may be higher than expected, probably exceeding 4 percent," said Li Xunlei, an analyst with Guotai Junan Securities. "From previous experiences, a rise in yield of one-year bills is usually followed by an interest rate hike for deposits."
Elsewhere, the US dollar continued to strengthen against euro, leading to a dip of gold, oil and basic metal prices on the global markets.
The blue chips declined. Aluminum Corp of China lost 0.9 percent to 12.51 yuan. Zijin Mining Co, China's biggest gold producer, dropped 1.7 percent to 10.30 yuan. Baoshan Iron & Steel Co declined 2 percent to 7.27 yuan.
Property developers extended previous losses after China's top statistics bureau said home prices in 70 cities rose 8.6 percent from last month, the slowest growth this year, while transaction areas dropped 11.2 percent. Home prices have been posting slower year-on-year growth for six consecutive months.
China Vanke shed 3.7 percent to 9.15 yuan. Gemdale Corp fell 3.7 percent to 6.57 yuan. Poly Real Estate Co tumbled 4.6 percent to 13.80 yuan.
- 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.
