Index edges down for 4th day
By Staff Reporter |
April 28, 2011, Thursday
|
Print Edition
Print Edition
CONCERNS over an interest rate hike and possible further measures by the central government to rein in property prices yesterday pulled Shanghai's key stock index down for a fourth day, its longest streak this year.
The Shanghai Composite Index edged down 0.5 percent to 2,925.41. The gauge has declined 4.3 percent from a five-month high on April 18.
"The market suspects that the central bank may raise interest rates again during the coming (May Day) holiday," said Zhang Gang, an analyst at China Central Securities. "The economic data due to be unveiled after the holiday are worrying investors."
The central bank has raised interest rates twice this year during previous holidays. The market will close next Monday for the holiday.
"The major concern for investors is that tightening will be intensified in the future," said Dai Ming, fund manager at Shanghai Kingsun Investment Management and Consulting Co. "The property market is likely to bear the brunt of further tightening as prices are still high. If the property market collapses, economic growth will be jeopardized."
Property firms led the drop on a report that China is studying ways to control their profits in a bid to ensure reasonable home prices, a top official at the National Development and Reform Commission told China News Service.
China Securities Journal also said home buyers may have to put a down payment of 50 percent for their first home purchases. Poly Real Estate Development Co, China's second-largest developer by market value, fell 2 percent to close at 13.28 yuan (US$2.04).
The Shanghai Composite Index edged down 0.5 percent to 2,925.41. The gauge has declined 4.3 percent from a five-month high on April 18.
"The market suspects that the central bank may raise interest rates again during the coming (May Day) holiday," said Zhang Gang, an analyst at China Central Securities. "The economic data due to be unveiled after the holiday are worrying investors."
The central bank has raised interest rates twice this year during previous holidays. The market will close next Monday for the holiday.
"The major concern for investors is that tightening will be intensified in the future," said Dai Ming, fund manager at Shanghai Kingsun Investment Management and Consulting Co. "The property market is likely to bear the brunt of further tightening as prices are still high. If the property market collapses, economic growth will be jeopardized."
Property firms led the drop on a report that China is studying ways to control their profits in a bid to ensure reasonable home prices, a top official at the National Development and Reform Commission told China News Service.
China Securities Journal also said home buyers may have to put a down payment of 50 percent for their first home purchases. Poly Real Estate Development Co, China's second-largest developer by market value, fell 2 percent to close at 13.28 yuan (US$2.04).
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