Pledge on price curbs sinks key stock index
By Ding Yining |
December 16, 2009, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S key stock index fell nearly 1 percent yesterday as property developers declined after the central government vowed to curb soaring real estate prices.
The Shanghai Composite Index lost 0.86 percent, or 28.44 points, to close at 3,274.46. Turnover totaled 126.1 billion yuan (US$18.5 billion).
The State Council, China's Cabinet, said at a meeting on Monday that it will target the excessive surge in property prices and plans to speed up the construction of low-cost housing.
The Cabinet said it would use several measures, including land-use policies and taxation to control property price rises, as it expressed its concern that housing prices could continue to surge excessively if left unchecked.
China Vanke Co, the biggest listed domestic real estate developer, lost 3.39 percent to 11.39 yuan while Gemdale Corp tumbled 5.15 percent to 14.74 yuan. Poly Real Estate Group sank 3.38 percent to 23.75 yuan.
"The market still faces capital pressure and some institutional investors may pull out at the end of the year after the index gained nearly 80 percent since January," Guoyuan Securities wrote in a note.
Banks and financial-related shares also declined. Ping An Insurance (Group) Co dropped 1.87 percent to 56.24 yuan. The Industrial and Commercial Bank of China, the nation's biggest lender, lost 1.13 percent to 5.26 yuan and Shanghai Pudong Development Bank tumbled 2.05 percent to 22.01 yuan.
PetroChina, the largest oil producer and biggest heavyweight in the index, lost 1.64 percent to 13.76 yuan after crude declined.
The Shanghai Composite Index lost 0.86 percent, or 28.44 points, to close at 3,274.46. Turnover totaled 126.1 billion yuan (US$18.5 billion).
The State Council, China's Cabinet, said at a meeting on Monday that it will target the excessive surge in property prices and plans to speed up the construction of low-cost housing.
The Cabinet said it would use several measures, including land-use policies and taxation to control property price rises, as it expressed its concern that housing prices could continue to surge excessively if left unchecked.
China Vanke Co, the biggest listed domestic real estate developer, lost 3.39 percent to 11.39 yuan while Gemdale Corp tumbled 5.15 percent to 14.74 yuan. Poly Real Estate Group sank 3.38 percent to 23.75 yuan.
"The market still faces capital pressure and some institutional investors may pull out at the end of the year after the index gained nearly 80 percent since January," Guoyuan Securities wrote in a note.
Banks and financial-related shares also declined. Ping An Insurance (Group) Co dropped 1.87 percent to 56.24 yuan. The Industrial and Commercial Bank of China, the nation's biggest lender, lost 1.13 percent to 5.26 yuan and Shanghai Pudong Development Bank tumbled 2.05 percent to 22.01 yuan.
PetroChina, the largest oil producer and biggest heavyweight in the index, lost 1.64 percent to 13.76 yuan after crude declined.
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