Property and banks lead stocks lower
By Pan Xiaoyi |
April 23, 2010, Friday
|
Print Edition
Print Edition
SHANGHAI'S key stock index dropped more than 1 percent yesterday, led by property developers and lenders as China's banking regulator will tighten rules to define "second home" ownership.
The Shanghai Composite Index fell 1.11 percent, or 33.79 points, to 2,999.48. Turnover rose to 153 billion yuan (US$22.5 billion) from 146 billion yuan.
The central government will check a housing registry to determine whether a family already owns a home instead of looking at the family's outstanding mortgage, said Yang Jicai, a China Banking Regulatory Commission director.
Last week, the central government raised the down payment requirement for second-home buyers to 50 percent from 40 percent and also said they have to pay a 10 percent premium on the interest rate for second-home mortgages.
"This round of draconian measures to clamp speculation in the housing market could bring house prices down as much as 20 percent in first-tier cities," said Wang Zhenyu, an analyst at UBS Investment Research.
"It is possible the central government will roll out more forceful measures to rein in asset bubbles," Wang added.
Of the possible measures to be taken, the property tax has attracted the most attention. The Economic Observer yesterday quoted an unnamed source as saying the State Council, or Cabinet, has given the go-ahead to a pilot property tax to be launched in Shanghai, Chongqing, Shenzhen and Beijing. The trial could be expanded nationwide later.
Shanghai-based Shimao Co plunged 3.7 percent to 12.10 yuan. Poly Real Estate Group, the country's second-largest listed developer, shed 1.4 percent to 16.76 yuan and Shanghai Lujiazui Finance & Trade Zone fell 2.5 percent to 20.11 yuan.
The Bank of Communications, part-owned by HSBC Holdings Plc, slid 4.9 percent to 7.33 yuan. Bloomberg News quoted Dicky Yip, an executive vice-president, as saying the bank's mortgage loans fell in February and March as the government seeks to rein in lending and curb property speculation.
China Construction Bank dipped 3 percent to close at 5.19 yuan.
The Shanghai Composite Index fell 1.11 percent, or 33.79 points, to 2,999.48. Turnover rose to 153 billion yuan (US$22.5 billion) from 146 billion yuan.
The central government will check a housing registry to determine whether a family already owns a home instead of looking at the family's outstanding mortgage, said Yang Jicai, a China Banking Regulatory Commission director.
Last week, the central government raised the down payment requirement for second-home buyers to 50 percent from 40 percent and also said they have to pay a 10 percent premium on the interest rate for second-home mortgages.
"This round of draconian measures to clamp speculation in the housing market could bring house prices down as much as 20 percent in first-tier cities," said Wang Zhenyu, an analyst at UBS Investment Research.
"It is possible the central government will roll out more forceful measures to rein in asset bubbles," Wang added.
Of the possible measures to be taken, the property tax has attracted the most attention. The Economic Observer yesterday quoted an unnamed source as saying the State Council, or Cabinet, has given the go-ahead to a pilot property tax to be launched in Shanghai, Chongqing, Shenzhen and Beijing. The trial could be expanded nationwide later.
Shanghai-based Shimao Co plunged 3.7 percent to 12.10 yuan. Poly Real Estate Group, the country's second-largest listed developer, shed 1.4 percent to 16.76 yuan and Shanghai Lujiazui Finance & Trade Zone fell 2.5 percent to 20.11 yuan.
The Bank of Communications, part-owned by HSBC Holdings Plc, slid 4.9 percent to 7.33 yuan. Bloomberg News quoted Dicky Yip, an executive vice-president, as saying the bank's mortgage loans fell in February and March as the government seeks to rein in lending and curb property speculation.
China Construction Bank dipped 3 percent to close at 5.19 yuan.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
