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Shanghai index slips on concerns about economic outlook
By Ye Zhen |
June 17, 2013, Monday
|
Online Edition
Online Edition
SHANGHAI stocks declined today, dragged down by property developers, amid concern about the economic outlook and market liquidity.
The key Shanghai Composite Index shed 5.83 points, or 0.27 percent, to 2,156.22. Daily turnover was 68.4 billion yuan (US$11.2 billion).
"The stock market is expected to continue a weak run due to a fragile economic recovery as indicated by recent data and liquidity risks," Huatai Securities said in a report.
The benchmark index slumped 2.2 percent last week after data showed China's economic growth is losing momentum with sluggish foreign trade, slowing industrial output and weak credit demand.
China's central bank said on Friday that outstanding funds for foreign exchange rose 66.9 billion yuan in May, a drop of 77 percent from April's 294.4 billion yuan increase, indicating slower foreign inflows.
UBS Investment Research reported the liquidity crunch will continue until the middle of July due to dividend payouts by banks, redemption of wealth management products in the middle of the year, and lenders moving to meet the reserve requirement ratio.
Property developers dropped after the Beijing government on Friday said it will require developers of non-residential projects and larger residential projects to meet construction progress requirements while applying for pre-sale permits.
Poly Real Estate, China's second largest developer, shed 0.9 percent to 10.97 yuan. Gemdale Corporation dropped 1.9 percent to 6.64 yuan.
The key Shanghai Composite Index shed 5.83 points, or 0.27 percent, to 2,156.22. Daily turnover was 68.4 billion yuan (US$11.2 billion).
"The stock market is expected to continue a weak run due to a fragile economic recovery as indicated by recent data and liquidity risks," Huatai Securities said in a report.
The benchmark index slumped 2.2 percent last week after data showed China's economic growth is losing momentum with sluggish foreign trade, slowing industrial output and weak credit demand.
China's central bank said on Friday that outstanding funds for foreign exchange rose 66.9 billion yuan in May, a drop of 77 percent from April's 294.4 billion yuan increase, indicating slower foreign inflows.
UBS Investment Research reported the liquidity crunch will continue until the middle of July due to dividend payouts by banks, redemption of wealth management products in the middle of the year, and lenders moving to meet the reserve requirement ratio.
Property developers dropped after the Beijing government on Friday said it will require developers of non-residential projects and larger residential projects to meet construction progress requirements while applying for pre-sale permits.
Poly Real Estate, China's second largest developer, shed 0.9 percent to 10.97 yuan. Gemdale Corporation dropped 1.9 percent to 6.64 yuan.
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