Stocks News
- Sell-off in property, bank sectors leads to dip
Date: 1-Feb-2007 Sources: (Xinhua Online)
Shares in Shanghai dipped yesterday amid selling in property and banking sectors.
The barometer Shanghai Composite Index, which tracks both yuan-denominated A shares and hard currency B shares, slid 0.5 percent to 2,930.56 yesterday.
'The property sector led the shed,' said Zhang Qi, a Haitong Securities Co analyst. 'The industry is under focus from authorities, and any trace of policy changes can affect sentiment on them.
Zhou Xiaochuan, the governor of the People's Bank of China, said the central bank is closely watching the price movement of the real estate sector, reports said yesterday.
Poly Real Estate Group Co, China's largest state-owned developer, dropped 8.34 percent to 42 yuan. Shanghai Lujiazui Finance & Trade Zone Development Co tumbled 5.45 percent to 17 yuan.
Zhou declined to comment on whether the central bank will increase interest rates due to the consumer price index pick-up in December, noting that the issue will be discussed in meetings at Shanghai headquarters later.
China's CPI increased 2.8 percent in December, against the expectation of 1.9 percent.
China may raise interest rates and requirements for banks' reserves, the China Construction Bank said in a research note yesterday.
The central bank may need to raise its reserve requirement on commercial lenders another three or four times, by half a percentage point each, to 11 percent, along with one or two interest rate increases, this year, the China Construction Bank research note said.
The banking sector has been affected by adjustments for profit taking.
China Minsheng Banking Corp slid 5.2 percent, to 13.25 yuan, and China Merchants Bank decreased 2.9 percent to 18.45 yuan.
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