Related News
Shanghai index drops to lowest this year
By Lydia Chen |
January 25, 2011, Tuesday
|
Online Edition
Online Edition
SHANGHAI stock market fell to the lowest this year, weighed down by commodity and property shares while small caps extended the losses amid debutants' weak performances.
The Shanghai Composite Index slipped 0.68 percent to 2,677.43. Trading remained lackluster as turnover declined to 75.58 billion yuan (US$ 11.49 billion) from yesterday's 96.2 billion.
"The market lacks of money to pull the index up," said Tong Bin, an analyst with Guotai Jun'an Securities. "Frequent new listings have absorbed part of market funds while liquidity is usually tight before the Spring Festival break."
Worries about shortage of liquidity has prompted the People's Bank of China to inject around 300 billion yuan into the interbank market via reverse bond repurchase agreements this week, following a similar move of 50 billion yuan last week.
In addition, the central bank said it suspended sales of any bills in its regular open-market operations this week, which was the second sales suspension in two weeks.
Zhonghong Real Estate Co paced the decline among developers with a fall of nearly 6 percent. Zijin Mining Group Co and Zhongjin Gold Co, the country's two biggest bullion producers by market value, both fell as a recovering US economy knocked gold to a 10-week low as demand from risk-averse investors waned.
Developers' lackluster performances came amid a report by Ningxia TV Station saying that Shanghai is waiting for higher authority to approve its property tax plan to impose a 4 percent levy on newly purchased homes of more than 60 square meters per person, which is way above market expectations of 0.6 percent to 0.8 percent.
Shenzhen has also followed Chongqing and Shanghai to submit its property tax plan, the report said.
The Shanghai Composite Index slipped 0.68 percent to 2,677.43. Trading remained lackluster as turnover declined to 75.58 billion yuan (US$ 11.49 billion) from yesterday's 96.2 billion.
"The market lacks of money to pull the index up," said Tong Bin, an analyst with Guotai Jun'an Securities. "Frequent new listings have absorbed part of market funds while liquidity is usually tight before the Spring Festival break."
Worries about shortage of liquidity has prompted the People's Bank of China to inject around 300 billion yuan into the interbank market via reverse bond repurchase agreements this week, following a similar move of 50 billion yuan last week.
In addition, the central bank said it suspended sales of any bills in its regular open-market operations this week, which was the second sales suspension in two weeks.
Zhonghong Real Estate Co paced the decline among developers with a fall of nearly 6 percent. Zijin Mining Group Co and Zhongjin Gold Co, the country's two biggest bullion producers by market value, both fell as a recovering US economy knocked gold to a 10-week low as demand from risk-averse investors waned.
Developers' lackluster performances came amid a report by Ningxia TV Station saying that Shanghai is waiting for higher authority to approve its property tax plan to impose a 4 percent levy on newly purchased homes of more than 60 square meters per person, which is way above market expectations of 0.6 percent to 0.8 percent.
Shenzhen has also followed Chongqing and Shanghai to submit its property tax plan, the report said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
