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Stocks' 5-day winning streak ends
By Lydia Chen |
October 31, 2011, Monday
|
Online Edition
Online Edition
SHANGHAI stocks snapped out of a 5-day gaining streak today and fell as developers weighed on the market after Premier Wen Jiabao dispelled speculation that his government will ease property industry curbs.
The Shanghai Composite Index was down 0.21 percent to 2,468.25. Turnover fell to 81.78 billion yuan (US$12.88 billion) from 104.2 billion yuan last Friday.
Real estate plays and banks were among the largest drag factors on the market today. Shanghai-based developer Shanghai Duolun Industry Co suffered a loss of 2.85 percent to 9.32 yuan. Shanghai Lujiazui Finance & Trade Zone Development Co shed 1.69 percent to 14 yuan.
Huaxia Bank dropped 3.14 percent to 11.10 yuan.
The government would "firmly" maintain current curbs on the real estate industry and local authorities should continue to strictly implement its tightening policies, Wen said in a statement following a State Council meeting over the weekend.
He said last week that China would fine-tune its anti-inflation tightening in some targeted industries especially for small- and medium-sized firms. The comments soon inspired a rally in the stock market, which posted a more than 6 percent gain last week.
The government this year increased down-payment requirements and mortgage rates on some homes and imposed housing purchase restrictions in about 40 cities. The central bank has also raised interest rates three times and the bank reserve requirement ratio six times in this year alone in order to fight inflation and curb bubbles in the housing market.
"The market may continue to extend some gains but a bullish trend is not likely to happen," according to a note released by China International Capital Corp today.
The leading Chinese investment bank cited investors' concerns on companies' shrinking profits as one of the reasons that may cause fluctuation in the long run.
The Shanghai Composite Index was down 0.21 percent to 2,468.25. Turnover fell to 81.78 billion yuan (US$12.88 billion) from 104.2 billion yuan last Friday.
Real estate plays and banks were among the largest drag factors on the market today. Shanghai-based developer Shanghai Duolun Industry Co suffered a loss of 2.85 percent to 9.32 yuan. Shanghai Lujiazui Finance & Trade Zone Development Co shed 1.69 percent to 14 yuan.
Huaxia Bank dropped 3.14 percent to 11.10 yuan.
The government would "firmly" maintain current curbs on the real estate industry and local authorities should continue to strictly implement its tightening policies, Wen said in a statement following a State Council meeting over the weekend.
He said last week that China would fine-tune its anti-inflation tightening in some targeted industries especially for small- and medium-sized firms. The comments soon inspired a rally in the stock market, which posted a more than 6 percent gain last week.
The government this year increased down-payment requirements and mortgage rates on some homes and imposed housing purchase restrictions in about 40 cities. The central bank has also raised interest rates three times and the bank reserve requirement ratio six times in this year alone in order to fight inflation and curb bubbles in the housing market.
"The market may continue to extend some gains but a bullish trend is not likely to happen," according to a note released by China International Capital Corp today.
The leading Chinese investment bank cited investors' concerns on companies' shrinking profits as one of the reasons that may cause fluctuation in the long run.
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