Stocks drop to lowest level on concerns of tight liquidity
By Ding Yining |
April 27, 2010, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks dropped yesterday to the lowest level in two-and-a-half months after financial firms and real estate developers fell on concerns of tighter liquidity in the property sector.
The Shanghai Composite Index dipped 0.47 percent to end at 2,969.50.
Turnover totaled 118.7 billion yuan (US$17.4 billion).
The May contract for index futures also shed 0.49 percent to 3,219.60.
"A cautious mentality continues to prevail among investors and the index may fall further" as more measures may be unveiled to cool the property market, said Chen Linzhan, an analyst with Sanyuan Securities.
The China Securities Regulatory Commission required property developers to submit fund raising plans for review and called for stricter scrutiny over how their funds were being used, according to a statement on the central government's Website over the weekend.
The Bank of China last Friday said it will raise interest rates for existing house mortgages. The rates for first house mortgages will be raised to 85 percent of the benchmark rate from 70 percent.
Poly Real Estate Group Co shed 0.42 percent to 16.79 yuan. Shimao Group Co fell 1.32 percent to 12 yuan.
Elsewhere, China Pacific Insurance (Group) Co sank 4.19 percent to 25.84 yuan and Ping An Insurance dropped 2.09 percent to 50.69 yuan. The Industrial and Commercial Bank of China closed 0.44 percent lower at 4.53 yuan and PetroChina, the biggest component in the index, dipped 0.41 percent to 12.20 yuan.
Consumer shares bucked the downward trend as investors shifted capital from the financial and property sectors. Beijing Gehua CATV Network Co, a cable television network operator, surged by the daily limit of 10 percent to end at 17.53 yuan. Shenzhen Topway Video Communications Co jumped 7.90 percent to 28.01 yuan.
The Shanghai Composite Index dipped 0.47 percent to end at 2,969.50.
Turnover totaled 118.7 billion yuan (US$17.4 billion).
The May contract for index futures also shed 0.49 percent to 3,219.60.
"A cautious mentality continues to prevail among investors and the index may fall further" as more measures may be unveiled to cool the property market, said Chen Linzhan, an analyst with Sanyuan Securities.
The China Securities Regulatory Commission required property developers to submit fund raising plans for review and called for stricter scrutiny over how their funds were being used, according to a statement on the central government's Website over the weekend.
The Bank of China last Friday said it will raise interest rates for existing house mortgages. The rates for first house mortgages will be raised to 85 percent of the benchmark rate from 70 percent.
Poly Real Estate Group Co shed 0.42 percent to 16.79 yuan. Shimao Group Co fell 1.32 percent to 12 yuan.
Elsewhere, China Pacific Insurance (Group) Co sank 4.19 percent to 25.84 yuan and Ping An Insurance dropped 2.09 percent to 50.69 yuan. The Industrial and Commercial Bank of China closed 0.44 percent lower at 4.53 yuan and PetroChina, the biggest component in the index, dipped 0.41 percent to 12.20 yuan.
Consumer shares bucked the downward trend as investors shifted capital from the financial and property sectors. Beijing Gehua CATV Network Co, a cable television network operator, surged by the daily limit of 10 percent to end at 17.53 yuan. Shenzhen Topway Video Communications Co jumped 7.90 percent to 28.01 yuan.
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