Zhou's remarks send key index lower
By Lu Nengneng |
March 13, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI'S stocks fell yesterday after the governor of China's central bank dispelled market speculation that monetary policy would be eased.
The Shanghai Composite Index shed 0.19 percent to close at 2,434.86 points.
The market got off to a bearish note yesterday after Zhou Xiaochuan, governor of the People's Bank of China, said at a press conference in Beijing yesterday that the cut in reserve requirement ratio for commercial banks did not mean that the monetary policies were being eased.
His remarks dragged down banks, which were among the biggest losers yesterday, although Zhou added there was still a large room for more ratio cuts. The Bank of Communications lost 1.22 percent to 4.86 yuan (77 US cents), and China CITIC Bank fell 1.1 percent to 4.49 yuan.
Property developers also dropped after Zhou clarified that funds unleashed by the ratio cuts would not all flow into the real estate sector.
Poly Real Estate, China's second-largest developer by market value, tumbled 3.85 percent to 11.23 yuan. The company said contracted sales for the first two months of this year declined 31 percent from a year earlier. Gemdale Corp lost 2.7 percent to 6.21 yuan.
Insurers fell on fears of risk exposure caused by a slump in housing prices. China Pacific Insurance tumbled 1.61 percent to 20.19 yuan.
The Shanghai Composite Index shed 0.19 percent to close at 2,434.86 points.
The market got off to a bearish note yesterday after Zhou Xiaochuan, governor of the People's Bank of China, said at a press conference in Beijing yesterday that the cut in reserve requirement ratio for commercial banks did not mean that the monetary policies were being eased.
His remarks dragged down banks, which were among the biggest losers yesterday, although Zhou added there was still a large room for more ratio cuts. The Bank of Communications lost 1.22 percent to 4.86 yuan (77 US cents), and China CITIC Bank fell 1.1 percent to 4.49 yuan.
Property developers also dropped after Zhou clarified that funds unleashed by the ratio cuts would not all flow into the real estate sector.
Poly Real Estate, China's second-largest developer by market value, tumbled 3.85 percent to 11.23 yuan. The company said contracted sales for the first two months of this year declined 31 percent from a year earlier. Gemdale Corp lost 2.7 percent to 6.21 yuan.
Insurers fell on fears of risk exposure caused by a slump in housing prices. China Pacific Insurance tumbled 1.61 percent to 20.19 yuan.
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