Key index falls to lowest in over 3 years
By Ye Zhen |
August 25, 2012, Saturday
|
Print Edition
Print Edition
SHANGHAI stock market yesterday fell to the lowest level since March 2009, rattled by news the central government intends to tighten property curbs and also on poor company earnings.
The Shanghai Composite Index lost 0.99 percent to 2,092.1 points, below 2,100 for the first time in over three years. For the week, the index fell 1.08 percent.
The index will fall next week if there is no policy adjustment at the weekend, Damo Investment Co said yesterday.
The government is closely monitoring changes in the real estate market and will work with related authorities to study measures to strengthen property curbs, an official at the Ministry of Housing and Urban-Rural Development said.
But UBS Securities took the contrarian view that the government is unlikely to restrain the property market further as it is a strong pillar of the economy, especially when growth has been slowing.
Shanghai Xinmei Real Estate slumped 8.5 percent to 6 yuan (94 US cents), and Gemdale Corp shed 1 percent to 4.98 yuan.
Investors were also spooked by poor company earnings. Data from the State-owned Assets Supervision and Administration Commission showed the combined net profit of state-owned firms fell 16.1 percent on an annual basis to 459.4 billion yuan in the first seven months of this year.
The Shanghai Composite Index lost 0.99 percent to 2,092.1 points, below 2,100 for the first time in over three years. For the week, the index fell 1.08 percent.
The index will fall next week if there is no policy adjustment at the weekend, Damo Investment Co said yesterday.
The government is closely monitoring changes in the real estate market and will work with related authorities to study measures to strengthen property curbs, an official at the Ministry of Housing and Urban-Rural Development said.
But UBS Securities took the contrarian view that the government is unlikely to restrain the property market further as it is a strong pillar of the economy, especially when growth has been slowing.
Shanghai Xinmei Real Estate slumped 8.5 percent to 6 yuan (94 US cents), and Gemdale Corp shed 1 percent to 4.98 yuan.
Investors were also spooked by poor company earnings. Data from the State-owned Assets Supervision and Administration Commission showed the combined net profit of state-owned firms fell 16.1 percent on an annual basis to 459.4 billion yuan in the first seven months of this year.
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