Shanghai stocks end at 6-month low
By Ding Yining |
April 28, 2010, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S stock market fell to its lowest level in more than six months yesterday, driven down by financial and consumer shares.
The plummet was fueled by speculation that more follow-up government measures to cool the property market will curb the demand for raw material and other consumer goods.
The economy in the first quarter was suspected to be overheated going on the country's gross domestic product figures and investment in property was the main contributor, Shenyin & Wanguo Securities said in a research note yesterday.
The benchmark Shanghai Composite Index dropped 2.07 percent, or 61.57 points, yesterday to close at 2,907.93 points after falling to as low as 2,866.34 points earlier in the afternoon amid turnover of 133.4 billion yuan (US$19.54 billion).
Losses outstripped gains by 814 to 123 and 165 were unchanged. About 355 billion yuan in market value was wiped from Monday's close.
The May contract for the CSI 300 index futures also sank 2.67 percent to 3,138.80 points.
"The market is concerned that possible fund-raising plans from banks will also draw up liquidity in the market," said analyst Zhang Gang from Central Securities.
Caixin Media reported on Monday that China Construction Bank may launch its 70-billion-yuan fund-raising plan as early as Friday.
Bank of Communications lost 1.96 percent to 6.99 yuan yesterday.
Wuhan Iron & Steel, the country's second largest steel maker, declined 3.63 percent to 5.57 yuan after it reported a 9.7-percent increase in profit to 288 million yuan in the first quarter compared to 2009.
Huaneng Power International, a unit of the country's largest electricity generator, fell 2.59 percent to 6.77 yuan.
China Vanke said profit in the first quarter lifted 46.5 percent year on year to 1.13 billion yuan but sales dipped 8 percent to 7.5 billion yuan.
The government's measures "will have significant impact on the market," Vanke said in a statement.
"It is believed that the trend of a rapid rise in housing prices in popular cities will end and the spillover of euphoria to other cities will stop."
China Vanke's stocks were down 1.28 percent to 7.70 yuan.
The plummet was fueled by speculation that more follow-up government measures to cool the property market will curb the demand for raw material and other consumer goods.
The economy in the first quarter was suspected to be overheated going on the country's gross domestic product figures and investment in property was the main contributor, Shenyin & Wanguo Securities said in a research note yesterday.
The benchmark Shanghai Composite Index dropped 2.07 percent, or 61.57 points, yesterday to close at 2,907.93 points after falling to as low as 2,866.34 points earlier in the afternoon amid turnover of 133.4 billion yuan (US$19.54 billion).
Losses outstripped gains by 814 to 123 and 165 were unchanged. About 355 billion yuan in market value was wiped from Monday's close.
The May contract for the CSI 300 index futures also sank 2.67 percent to 3,138.80 points.
"The market is concerned that possible fund-raising plans from banks will also draw up liquidity in the market," said analyst Zhang Gang from Central Securities.
Caixin Media reported on Monday that China Construction Bank may launch its 70-billion-yuan fund-raising plan as early as Friday.
Bank of Communications lost 1.96 percent to 6.99 yuan yesterday.
Wuhan Iron & Steel, the country's second largest steel maker, declined 3.63 percent to 5.57 yuan after it reported a 9.7-percent increase in profit to 288 million yuan in the first quarter compared to 2009.
Huaneng Power International, a unit of the country's largest electricity generator, fell 2.59 percent to 6.77 yuan.
China Vanke said profit in the first quarter lifted 46.5 percent year on year to 1.13 billion yuan but sales dipped 8 percent to 7.5 billion yuan.
The government's measures "will have significant impact on the market," Vanke said in a statement.
"It is believed that the trend of a rapid rise in housing prices in popular cities will end and the spillover of euphoria to other cities will stop."
China Vanke's stocks were down 1.28 percent to 7.70 yuan.
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