Possible delay to easing pulls index to lowest level so far
By Ye Zhen |
August 21, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI shares retreated yesterday, sending the key index to the lowest level this month, on speculation China may delay easing monetary policy as home prices rose in July.
The Shanghai Composite Index fell 0.38 percent to 2,106.96 points, the lowest close since July 31.
Excluding government-funded affordable housing, home prices rose in 50 out of the 70 monitored cities across China last month, doubled the number in June, the National Bureau of Statistics said on Saturday.
The strong demand of genuine homebuyers and adjustments made to monetary policy helped push up home prices, said Zhu Zhongyi, deputy director of the China Real Estate Association.
These factors may compel the central government to delay further monetary easing moves to curb speculative demand in the property market if home prices continued to climb, China International Capital Corp said in its latest report.
Poly Real Estate, China's second-largest listed developer, fell 3 percent to 10.02 yuan (US$1.57), and Gemdale Corp shed 2.4 percent to 5.29 yuan.
Institutional investors were unloading bank stocks as lenders may underperform in the second half this year due to weak growth in loans since the first quarter, Zeng Gang, director of the Institute of Finance Bank Research Office at the Chinese Academy of Social Sciences, said.
China Merchants Bank lost 1.4 percent to 9.88 yuan and the Bank of Communications fell 0.9 percent to 4.38 yuan.
The Shanghai Composite Index fell 0.38 percent to 2,106.96 points, the lowest close since July 31.
Excluding government-funded affordable housing, home prices rose in 50 out of the 70 monitored cities across China last month, doubled the number in June, the National Bureau of Statistics said on Saturday.
The strong demand of genuine homebuyers and adjustments made to monetary policy helped push up home prices, said Zhu Zhongyi, deputy director of the China Real Estate Association.
These factors may compel the central government to delay further monetary easing moves to curb speculative demand in the property market if home prices continued to climb, China International Capital Corp said in its latest report.
Poly Real Estate, China's second-largest listed developer, fell 3 percent to 10.02 yuan (US$1.57), and Gemdale Corp shed 2.4 percent to 5.29 yuan.
Institutional investors were unloading bank stocks as lenders may underperform in the second half this year due to weak growth in loans since the first quarter, Zeng Gang, director of the Institute of Finance Bank Research Office at the Chinese Academy of Social Sciences, said.
China Merchants Bank lost 1.4 percent to 9.88 yuan and the Bank of Communications fell 0.9 percent to 4.38 yuan.
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