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Stocks fall most in 10 weeks as inflation fear grows
By Ye Zhen |
September 17, 2012, Monday
|
Online Edition
Online Edition
SHANGHAI stocks fell the most in 10 weeks today on speculation the government will hold off monetary easing policy as the US Federal Reserve's latest stimulus package may stoke inflation.
The benchmark Shanghai Composite Index slumped 2.14 percent, or 45.35 points, to close at 2,078.50 points. Daily turnover was 62.5 billion yuan (US$9.9 billion).
The latest stimulus measures by the Federal Reserve may exacerbate inflation in China and complicate Beijing's efforts to invigorate the national economy, analysts said.
China will face more imported inflation as the Federal Reserve's third round of quantitative easing (QE3) is likely to fuel prices for energy and other products, said Zhang Ming, senior researcher at the Institute of World Economics and Politics under the Chinese Academy of Social Sciences. Zhang expects China's inflation to pick up as early as December.
Although statistics showed the nation's economic growth continued to slow last month, China has been delaying monetary easing to avoid a rebound in inflation and home prices. Shenyin & Wanguo Securities Co said QE3 will make it complicated for China to take further easing measures.
Property developers led the market down after Nanjing tightened market control to curb soaring home prices. China Vanke, the nation's biggest developer, lost 3.4 percent to 8.06 yuan. Poly Real Estate, the second largest developer, slumped 6.7 percent to 9.71 yuan. Gemdale Corporation fell 4.1 percent to 4.86 yuan.
Cement producers also fell. Anhui Conch Cement Co, China's biggest cement producer, lost 1.8 percent to end at 15.01 yuan. Zhejiang Jianfeng Group Co, shed 4.3 percent to 10.39 yuan. Gansu Qilianshan Cement Group Co fell 4.4 percent to 10.63 yuan.
Brokerages also declined. CITIC Securities, China's biggest listed brokerage, lost 4 percent to 10.90 yuan. Haitong Securities Co sank 3.9 percent to 8.81 yuan. Founder Securities Co dropped 4.5 percent to 4.23 yuan.
The benchmark Shanghai Composite Index slumped 2.14 percent, or 45.35 points, to close at 2,078.50 points. Daily turnover was 62.5 billion yuan (US$9.9 billion).
The latest stimulus measures by the Federal Reserve may exacerbate inflation in China and complicate Beijing's efforts to invigorate the national economy, analysts said.
China will face more imported inflation as the Federal Reserve's third round of quantitative easing (QE3) is likely to fuel prices for energy and other products, said Zhang Ming, senior researcher at the Institute of World Economics and Politics under the Chinese Academy of Social Sciences. Zhang expects China's inflation to pick up as early as December.
Although statistics showed the nation's economic growth continued to slow last month, China has been delaying monetary easing to avoid a rebound in inflation and home prices. Shenyin & Wanguo Securities Co said QE3 will make it complicated for China to take further easing measures.
Property developers led the market down after Nanjing tightened market control to curb soaring home prices. China Vanke, the nation's biggest developer, lost 3.4 percent to 8.06 yuan. Poly Real Estate, the second largest developer, slumped 6.7 percent to 9.71 yuan. Gemdale Corporation fell 4.1 percent to 4.86 yuan.
Cement producers also fell. Anhui Conch Cement Co, China's biggest cement producer, lost 1.8 percent to end at 15.01 yuan. Zhejiang Jianfeng Group Co, shed 4.3 percent to 10.39 yuan. Gansu Qilianshan Cement Group Co fell 4.4 percent to 10.63 yuan.
Brokerages also declined. CITIC Securities, China's biggest listed brokerage, lost 4 percent to 10.90 yuan. Haitong Securities Co sank 3.9 percent to 8.81 yuan. Founder Securities Co dropped 4.5 percent to 4.23 yuan.
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