Stocks sink on Europe's debt and tax
By Feng Jianmin and Pan Xiaoyi |
June 1, 2010, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks tumbled, sending the benchmark index to its biggest monthly loss since August, on jitters about Europe's debt crisis after Spain's credit ratings were cut as well as on concerns that the domestic real estate market may be hit with a property tax.
The Shanghai Composite Index slid 63.62 points, or 2.4 percent, to 2,592.15. Turnover stood at 89.2 billion yuan (US$13.1 billion). The gauge dived 9.7 percent in May, extending April's 7.7 percent decline.
Concerns about the European debt crisis grew after Fitch downgraded Spain's credit rating from AAA to AA+, which is likely to impact China's shipments to Europe, the country's largest export destination.
"The market is plagued with uncertainties over overseas markets, domestic monetary policy and inflationary pressure. Investors tended to avert risks by cutting their holdings," said Qian Qimin, an anlayst at Shenyin & Wanguo Securities Co. Property stocks led the decline after the National Development and Reform Commission, the country's top economic planner, unveiled a plan including a "gradual promotion of property tax reform."
China Merchants Property Development Co lost 4.57 percent to 15.45 yuan and Gemdale fell 4.31 percent to 6.44 yuan.
The Bank of China, however, gained 2 percent to 4.09 yuan after it said it planned to raise 40 billion yuan by selling convertible bonds tomorrow.
China Construction Bank lost 2.81 percent to 6.57 yuan. China Pacific Insurance (Group) Co fell 2.61 percent to 21.68 yuan. Citic Securities, the country's largest brokerage, dived 4.07 percent to 19.80 yuan.
The Shanghai Composite Index slid 63.62 points, or 2.4 percent, to 2,592.15. Turnover stood at 89.2 billion yuan (US$13.1 billion). The gauge dived 9.7 percent in May, extending April's 7.7 percent decline.
Concerns about the European debt crisis grew after Fitch downgraded Spain's credit rating from AAA to AA+, which is likely to impact China's shipments to Europe, the country's largest export destination.
"The market is plagued with uncertainties over overseas markets, domestic monetary policy and inflationary pressure. Investors tended to avert risks by cutting their holdings," said Qian Qimin, an anlayst at Shenyin & Wanguo Securities Co. Property stocks led the decline after the National Development and Reform Commission, the country's top economic planner, unveiled a plan including a "gradual promotion of property tax reform."
China Merchants Property Development Co lost 4.57 percent to 15.45 yuan and Gemdale fell 4.31 percent to 6.44 yuan.
The Bank of China, however, gained 2 percent to 4.09 yuan after it said it planned to raise 40 billion yuan by selling convertible bonds tomorrow.
China Construction Bank lost 2.81 percent to 6.57 yuan. China Pacific Insurance (Group) Co fell 2.61 percent to 21.68 yuan. Citic Securities, the country's largest brokerage, dived 4.07 percent to 19.80 yuan.
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