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Shanghai shares slightly lower after interest rate hike
By Lydia Chen |
February 9, 2011, Wednesday
|
Online Edition
Online Edition
SHANGHAI'S stock market closed slightly lower this morning following a week-long break as shares seesawed between the positive and negative territories after a surprise interest rate rise yesterday.
The Shanghai Composite Index edged down 0.03 percent to 2,798.22 by the noon break. Turnover climbed slightly up to 54.33 billion yuan (US$8.26 billion) from 50.6 billion yuan on the morning of February 1, the last trading day before the Spring Festival holiday.
Developers were the worst performers amid China's latest move to curb inflation. RiseSun Real Estate Development Co lost 1.45 percent to 11.54 yuan. China Vanke, the biggest developer, shed 0.61 percent to 8.13 yuan.
The People's Bank of China raised the one-year lending rate by a quarter point to 6.06 percent and the one-year deposit rate by an equivalent amount to 3 percent yesterday, meaning a higher borrowing cost for loan clients like developers.
The last move came after China raised second-home down payment to 60 percent last month along with an introduction of property tax in Shanghai and Chongqing.
But shares in consumer and telecommunication sectors outperformed the market this morning as investors believed these stocks will weather through the country's continuous efforts to battle against inflation.
GD Midea Holding Co rose 1.73 percent to 16.50 yuan while China United Network Communications Ltd added 2.47 percent to 6.22 yuan.
The Shanghai Composite Index edged down 0.03 percent to 2,798.22 by the noon break. Turnover climbed slightly up to 54.33 billion yuan (US$8.26 billion) from 50.6 billion yuan on the morning of February 1, the last trading day before the Spring Festival holiday.
Developers were the worst performers amid China's latest move to curb inflation. RiseSun Real Estate Development Co lost 1.45 percent to 11.54 yuan. China Vanke, the biggest developer, shed 0.61 percent to 8.13 yuan.
The People's Bank of China raised the one-year lending rate by a quarter point to 6.06 percent and the one-year deposit rate by an equivalent amount to 3 percent yesterday, meaning a higher borrowing cost for loan clients like developers.
The last move came after China raised second-home down payment to 60 percent last month along with an introduction of property tax in Shanghai and Chongqing.
But shares in consumer and telecommunication sectors outperformed the market this morning as investors believed these stocks will weather through the country's continuous efforts to battle against inflation.
GD Midea Holding Co rose 1.73 percent to 16.50 yuan while China United Network Communications Ltd added 2.47 percent to 6.22 yuan.
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