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Stocks slide as investors fret about slumping property market
By Hu Xiaocen |
April 19, 2012, Thursday
|
Online Edition
Online Edition
SHANGHAI stocks dipped today after slumping housing prices overshadowed speculation the government will loosen monetary policy.
The Shanghai Composite Index edged down 0.09 percent, or 2.21 points, to 2,378.63 with turnover at 90 billion yuan (US$14.2 billion).
"Brokerages, banks and property developers performed weakly, dragging down the index," said Damo Investment Co in a note. "The index is unlikely to exceed 2,400 points without policy stimulus."
Citic Securities Co retreated 0.8 percent to 13.29 yuan. Haitong Securities Co tumbled 2.1 percent to 10.09 yuan.
Industrial and Commercial Bank of China, the nation's biggest lender, shed 0.7 percent to 4.35 yuan. Bank of China slumped 1 percent to 3.05 yuan.
The slumping property market has spooked investors while the buzz about the reserve requirement continues.
Home prices fell last month in 46 of the 70 cities monitored by the National Statistics Bureau. In Shanghai, Beijing, Guangzhou and Shenzhen, new home prices dropped for the sixth straight month, as local governments pledged to stick with price curbing measures.
The central bank said yesterday it will "flexibly" adjust liquidity in the banking system through the reverse repurchase of bills and cuts in the reserve requirement ratio. But expectations for further cuts in the reserve requirement were soon dispelled after Reuters reported today that excess reserves at financial institutions stood at 180 million yuan by the end of March, reflecting a healthy liquidity level. The report cited an official at the central bank.
China Galaxy Securities said today inflationary pressure is dropping as vegetable prices decline with the weather warming up and as oil prices fall on growing US supplies. New loans in March totaled 1.01 trillion yuan, largely exceeding market estimates, which signals policy easing. Therefore the brokerage is optimistic about the A-share market in the medium term due to improving liquidity.
The Shanghai Composite Index edged down 0.09 percent, or 2.21 points, to 2,378.63 with turnover at 90 billion yuan (US$14.2 billion).
"Brokerages, banks and property developers performed weakly, dragging down the index," said Damo Investment Co in a note. "The index is unlikely to exceed 2,400 points without policy stimulus."
Citic Securities Co retreated 0.8 percent to 13.29 yuan. Haitong Securities Co tumbled 2.1 percent to 10.09 yuan.
Industrial and Commercial Bank of China, the nation's biggest lender, shed 0.7 percent to 4.35 yuan. Bank of China slumped 1 percent to 3.05 yuan.
The slumping property market has spooked investors while the buzz about the reserve requirement continues.
Home prices fell last month in 46 of the 70 cities monitored by the National Statistics Bureau. In Shanghai, Beijing, Guangzhou and Shenzhen, new home prices dropped for the sixth straight month, as local governments pledged to stick with price curbing measures.
The central bank said yesterday it will "flexibly" adjust liquidity in the banking system through the reverse repurchase of bills and cuts in the reserve requirement ratio. But expectations for further cuts in the reserve requirement were soon dispelled after Reuters reported today that excess reserves at financial institutions stood at 180 million yuan by the end of March, reflecting a healthy liquidity level. The report cited an official at the central bank.
China Galaxy Securities said today inflationary pressure is dropping as vegetable prices decline with the weather warming up and as oil prices fall on growing US supplies. New loans in March totaled 1.01 trillion yuan, largely exceeding market estimates, which signals policy easing. Therefore the brokerage is optimistic about the A-share market in the medium term due to improving liquidity.
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