Index retreats for second straight day
By Ye Zhen |
July 19, 2013, Friday
|
Print Edition
Print Edition
SHANGHAI stocks extended their losses for a second day as cyclical shares retreated due to a shift in policy expectation, overshadowing gains made by small-cap firms.
The key Shanghai Composite Index declined 21.53 points, or 1.05 percent, to settle at 2,023.40 yesterday.
"The market oscillated and ended lower with polarized performances between cyclical shares and growth stocks because investors are less hopeful about massive stimuli and are now betting on restructuring," said market analyst Yang Liu.
Cyclical shares, whose performance is closely linked to economic conditions, retreated after Finance Minister Lou Jiwei said that China is unlikely to introduce a large fiscal stimulus this year, according to a statement on the finance ministry's website.
Coal producers led the market decline after data showed the Bohai-Rim Steam-Coal Price Index, a gauge of steam coal price at six ports, fell 1.5 percent to 583 yuan (US$94.92) a ton, the biggest slide within the year.
In a separate statement, Lou said China would promote a resource-tax reform by taxing coal production based on value instead of volume, which may increase the taxation on the sector and further squeeze its profit margin.
Shanxi Lu'an Environmental Energy Development Co lost 3.8 percent to 11.47 yuan. Shanxi Lanhua Sci-Tech Venture Co fell 3.1 percent to 12.20 yuan.
Media firms rose following an announcement that China would slash administrative barriers for the sector. Zhejiang Daily Media Group Co jumped 5.4 percent to 31.49 yuan.
The key Shanghai Composite Index declined 21.53 points, or 1.05 percent, to settle at 2,023.40 yesterday.
"The market oscillated and ended lower with polarized performances between cyclical shares and growth stocks because investors are less hopeful about massive stimuli and are now betting on restructuring," said market analyst Yang Liu.
Cyclical shares, whose performance is closely linked to economic conditions, retreated after Finance Minister Lou Jiwei said that China is unlikely to introduce a large fiscal stimulus this year, according to a statement on the finance ministry's website.
Coal producers led the market decline after data showed the Bohai-Rim Steam-Coal Price Index, a gauge of steam coal price at six ports, fell 1.5 percent to 583 yuan (US$94.92) a ton, the biggest slide within the year.
In a separate statement, Lou said China would promote a resource-tax reform by taxing coal production based on value instead of volume, which may increase the taxation on the sector and further squeeze its profit margin.
Shanxi Lu'an Environmental Energy Development Co lost 3.8 percent to 11.47 yuan. Shanxi Lanhua Sci-Tech Venture Co fell 3.1 percent to 12.20 yuan.
Media firms rose following an announcement that China would slash administrative barriers for the sector. Zhejiang Daily Media Group Co jumped 5.4 percent to 31.49 yuan.
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