Fears of rise in home prices weigh on index
By Ye Zhen |
August 14, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday fell the most in four weeks amid talk the government may delay easing its measures to avert a rebound in home prices as well as on concerns over poor company earnings.
The Shanghai Composite Index slumped 1.51 percent to 2,136.08 points.
Stimulus measures are needed to spur economic growth and boost investor confidence after economic data released last week showed a further slowdown in the world's second largest economy, analysts said.
A rebound in home prices is the main factor deterring the government from taking further moves to ease monetary measures, China International Capital Corp said in a report.
A weaker growth in company earnings also cast a cloud over investor confidence. The combined net profit of 846 companies listed in both Shanghai and Shenzhen which have reported second-quarter earnings expanded at a slower annual pace of 0.14 percent in the April-June period, down from an annual rise of 3.93 percent in the first quarter, data from Wind Information Co showed.
Citic Securities, China's biggest listed brokerage, led the decline for brokerages, off 9.1 percent to 10.99 yuan (US$1.73), the lowest in nearly six months, amid rumors it lost 2.9 billion yuan in overseas investments. Haitong Securities Co fell 8.6 percent to 8.90 yuan. Soochow Securities Co slumped 8.6 percent to 7.80 yuan.
Property stocks fell on fears the government may tighten control of the housing market, Yang Hongxu, director of research at Shanghai E-House Real Estate Institute, said.
Poly Real Estate, the nation's second-largest listed developer, slumped 4.1 percent to 10.19 yuan. Gemdale Corp fell 2.7 percent to finish at 5.38 yuan.
The Shanghai Composite Index slumped 1.51 percent to 2,136.08 points.
Stimulus measures are needed to spur economic growth and boost investor confidence after economic data released last week showed a further slowdown in the world's second largest economy, analysts said.
A rebound in home prices is the main factor deterring the government from taking further moves to ease monetary measures, China International Capital Corp said in a report.
A weaker growth in company earnings also cast a cloud over investor confidence. The combined net profit of 846 companies listed in both Shanghai and Shenzhen which have reported second-quarter earnings expanded at a slower annual pace of 0.14 percent in the April-June period, down from an annual rise of 3.93 percent in the first quarter, data from Wind Information Co showed.
Citic Securities, China's biggest listed brokerage, led the decline for brokerages, off 9.1 percent to 10.99 yuan (US$1.73), the lowest in nearly six months, amid rumors it lost 2.9 billion yuan in overseas investments. Haitong Securities Co fell 8.6 percent to 8.90 yuan. Soochow Securities Co slumped 8.6 percent to 7.80 yuan.
Property stocks fell on fears the government may tighten control of the housing market, Yang Hongxu, director of research at Shanghai E-House Real Estate Institute, said.
Poly Real Estate, the nation's second-largest listed developer, slumped 4.1 percent to 10.19 yuan. Gemdale Corp fell 2.7 percent to finish at 5.38 yuan.
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