Index sinks on report of property tax
By Ding Yining |
May 26, 2010, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S stock market tumbled nearly 2 percent yesterday after a report of a possible introduction of a property tax pulled real estate developers down.
The Shanghai Composite Index fell 1.9 percent, or 50.79 points, to close at 2,622.63. Turnover shrank to 101.7 billion yuan (US$14.9 billion) from 121.8 billion yuan on Monday.
The major June contract for index futures slid by a bigger margin of 3.28 percent to 2,813.2 points.
Shanghai will introduce a property tax on a trial basis next month, the Economic Observer reported yesterday, citing an unidentified source.
"The situation with the property market is still unclear and some of the undervalued financial shares might rebound but the overall trading will remain flat," Greatwall Securities wrote in a note yesterday.
China Merchants Property Development Co sank 3.95 percent to 16.52 yuan. Gemdale Corp lost 1.55 percent to 6.98 yuan, and Poly Real Estate Group dropped 4.03 percent to 11.66 yuan.
The Strategic Development Center of the Bank of China wrote in a report that interest rates are not likely to rise in the near future and monetary policies will be mainly targeted at curbing excessive liquidity and controlling price levels. It also predicted that the consumer price index, a major gauge of inflation, may rise 3.7 percent in the second quarter.
Financial shares also dragged down the index. Ping An Insurance (Group) Co fell 3.50 percent to 45.25 yuan and China Pacific Insurance (Group) Co sank 5.06 percent to 21.77 yuan. The Bank of Communications lost 3.74 percent to 6.70 yuan.
The Shanghai Composite Index fell 1.9 percent, or 50.79 points, to close at 2,622.63. Turnover shrank to 101.7 billion yuan (US$14.9 billion) from 121.8 billion yuan on Monday.
The major June contract for index futures slid by a bigger margin of 3.28 percent to 2,813.2 points.
Shanghai will introduce a property tax on a trial basis next month, the Economic Observer reported yesterday, citing an unidentified source.
"The situation with the property market is still unclear and some of the undervalued financial shares might rebound but the overall trading will remain flat," Greatwall Securities wrote in a note yesterday.
China Merchants Property Development Co sank 3.95 percent to 16.52 yuan. Gemdale Corp lost 1.55 percent to 6.98 yuan, and Poly Real Estate Group dropped 4.03 percent to 11.66 yuan.
The Strategic Development Center of the Bank of China wrote in a report that interest rates are not likely to rise in the near future and monetary policies will be mainly targeted at curbing excessive liquidity and controlling price levels. It also predicted that the consumer price index, a major gauge of inflation, may rise 3.7 percent in the second quarter.
Financial shares also dragged down the index. Ping An Insurance (Group) Co fell 3.50 percent to 45.25 yuan and China Pacific Insurance (Group) Co sank 5.06 percent to 21.77 yuan. The Bank of Communications lost 3.74 percent to 6.70 yuan.
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