Index extends losses on cautious investors
By Lydia Chen |
November 9, 2011, Wednesday
|
Print Edition
Print Edition
SHARES in Shanghai yesterday extended losses for a second day as investors stayed cautious ahead of the release of China's inflation data today.
The Shanghai Composite Index dipped 0.2 percent to 2,503.84 points.
China's inflation may slip to 5.6 percent in October from 6.1 percent in September, according to a note by Sinolink Securities Co yesterday. The brokerage added it expects inflation to continue falling and may hit 4.5 percent in November.
But it warned that inflation may bounce back in December as the Spring Festival approaches in January.
Analysts at the Bank of Communications, however, cautioned yesterday that the decline in inflation may be limited because labor cost is bound to rise over the long term and prices of commodities are still high.
Real estate firms continued to slide on weak home sales.
Poly Real Estate Group slipped 2 percent to 9.85 yuan. China's second-largest developer by market value said October contracted sales fell 39 percent from a year earlier. Gemdale Corp lost 1 percent to 4.78 yuan after saying its October sales slumped 38 percent from a year ago.
Weekly sales of new homes in Shanghai fell 32.4 percent from a week earlier during the seven-day period ended Sunday as buyers continued to wait and see, said Shanghai Deovolente Realty Co.
The Shanghai Securities News also said yesterday that several measures, including a property tax, have been prepared to prevent home prices from rebounding.
Citic Securities said China may lower its bank reserve requirement ratio from a record high 21.5 percent before the Spring Festival on January 23, which may boost the market.
The Shanghai Composite Index dipped 0.2 percent to 2,503.84 points.
China's inflation may slip to 5.6 percent in October from 6.1 percent in September, according to a note by Sinolink Securities Co yesterday. The brokerage added it expects inflation to continue falling and may hit 4.5 percent in November.
But it warned that inflation may bounce back in December as the Spring Festival approaches in January.
Analysts at the Bank of Communications, however, cautioned yesterday that the decline in inflation may be limited because labor cost is bound to rise over the long term and prices of commodities are still high.
Real estate firms continued to slide on weak home sales.
Poly Real Estate Group slipped 2 percent to 9.85 yuan. China's second-largest developer by market value said October contracted sales fell 39 percent from a year earlier. Gemdale Corp lost 1 percent to 4.78 yuan after saying its October sales slumped 38 percent from a year ago.
Weekly sales of new homes in Shanghai fell 32.4 percent from a week earlier during the seven-day period ended Sunday as buyers continued to wait and see, said Shanghai Deovolente Realty Co.
The Shanghai Securities News also said yesterday that several measures, including a property tax, have been prepared to prevent home prices from rebounding.
Citic Securities said China may lower its bank reserve requirement ratio from a record high 21.5 percent before the Spring Festival on January 23, which may boost the market.
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