Property developers drag down local index
By Ye Zhen |
July 26, 2012, Thursday
|
Print Edition
Print Edition
THE Shanghai stock market yesterday fell to the lowest level since 2009, dragged down by property developers, after the government unveiled plans to inspect the local implementation of property regulation in cities.
The key Shanghai Composite Index lost 0.49 percent to 2,136.15 points, its lowest close since March 2009.
China will launch inspections later this month to investigate the execution of restriction policies on housing markets in 16 provincial areas, including Shanghai, Beijing, Tianjin and Guangdong, the State Council said in a statement.
The move is an effort to "further ensure property tightening measures are implemented, speculative housing demand is curbed, and to strengthen the effects of the property tightening measures," the statement said.
Chang Qing, an analyst with Homelink Real Estate Co, said: "The investigation will undoubtedly increase market expectation over a tighter control on the property market in the second half of the year."
Poly Real Estate, China's second-largest listed developer, fell 2.5 percent to 11.15 yuan (US$1.75). Gemdale Corp retreated 2.8 percent to 5.87 yuan.
Poor company earnings also weighed on the property sector. Data showed that 24 out of 46 listed property developers that have released earnings reports for the first half suffered a profit slump, China Economic Net reported yesterday.
Coal producers lost on falling demand. China Shenhua Energy Co, the nation's biggest coal producer, fell 1.3 percent to 21.68 yuan.
Shanxi Lanhua Sci-Tech Venture Co retreated 2.2 percent to 18.99 yuan.
The key Shanghai Composite Index lost 0.49 percent to 2,136.15 points, its lowest close since March 2009.
China will launch inspections later this month to investigate the execution of restriction policies on housing markets in 16 provincial areas, including Shanghai, Beijing, Tianjin and Guangdong, the State Council said in a statement.
The move is an effort to "further ensure property tightening measures are implemented, speculative housing demand is curbed, and to strengthen the effects of the property tightening measures," the statement said.
Chang Qing, an analyst with Homelink Real Estate Co, said: "The investigation will undoubtedly increase market expectation over a tighter control on the property market in the second half of the year."
Poly Real Estate, China's second-largest listed developer, fell 2.5 percent to 11.15 yuan (US$1.75). Gemdale Corp retreated 2.8 percent to 5.87 yuan.
Poor company earnings also weighed on the property sector. Data showed that 24 out of 46 listed property developers that have released earnings reports for the first half suffered a profit slump, China Economic Net reported yesterday.
Coal producers lost on falling demand. China Shenhua Energy Co, the nation's biggest coal producer, fell 1.3 percent to 21.68 yuan.
Shanxi Lanhua Sci-Tech Venture Co retreated 2.2 percent to 18.99 yuan.
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