Property concerns cause fall in market
By Feng Jianmin |
April 23, 2011, Saturday
|
Print Edition
Print Edition
SHANGHAI'S stock market fell yesterday, driving the benchmark index to its biggest weekly loss in three months, on concerns that property prices would drop. Gains in gold miners were offset by banks and property developers' losses.
The Shanghai Composite Index dipped 0.5 percent, or 16.15 points, to 3,010.52. The gauge slumped 1.3 percent this week, the biggest decline since the five days ended January 21.
Banks in seven major cities have been ordered to conduct a stress test to see whether they can handle a worst-case scenario of a 50 percent slump in property prices.
Banks and property developers dropped.
The Agricultural Bank of China fell 1.4 percent to 2.88 yuan. China Construction Bank was down 1.2 percent to 5.18 yuan. Poly Real Estate Group, China's second-biggest listed developer, shed 0.7 percent to 13.71 yuan. Gemdale Corp, the fourth-largest, lost 0.9 percent to 6.64 yuan.
"The news hurt market sentiment even though it did not indicate further tightening of policies," said Chen Yong, an analyst at Lianxun Securities.
He predicted sectors such as airlines and paper making would enjoy growth as the government would allow yuan appreciation to combat inflation and improve economic structures.
Gold miners jumped after gold bullion prices touched US$1,509.60 per ounce in New York as the dollar index dropped to a 32-month low.
Zhongjin Gold Mining Co climbed 4.5 percent to 41.04 yuan. Zijin Mining Co rose 1.2 percent to 8.19 yuan.
The Shanghai Composite Index dipped 0.5 percent, or 16.15 points, to 3,010.52. The gauge slumped 1.3 percent this week, the biggest decline since the five days ended January 21.
Banks in seven major cities have been ordered to conduct a stress test to see whether they can handle a worst-case scenario of a 50 percent slump in property prices.
Banks and property developers dropped.
The Agricultural Bank of China fell 1.4 percent to 2.88 yuan. China Construction Bank was down 1.2 percent to 5.18 yuan. Poly Real Estate Group, China's second-biggest listed developer, shed 0.7 percent to 13.71 yuan. Gemdale Corp, the fourth-largest, lost 0.9 percent to 6.64 yuan.
"The news hurt market sentiment even though it did not indicate further tightening of policies," said Chen Yong, an analyst at Lianxun Securities.
He predicted sectors such as airlines and paper making would enjoy growth as the government would allow yuan appreciation to combat inflation and improve economic structures.
Gold miners jumped after gold bullion prices touched US$1,509.60 per ounce in New York as the dollar index dropped to a 32-month low.
Zhongjin Gold Mining Co climbed 4.5 percent to 41.04 yuan. Zijin Mining Co rose 1.2 percent to 8.19 yuan.
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