The mainland's key index followed sharp drops in New York and
Hong Kong to fall 1.54 percent yesterday, reversing the trend of
the past three days.
The benchmark Shanghai Composite Index fell 79.54 points to
close at 5095.54, with 449 of 909 stocks closing higher. The
Shenzhen Component Index dropped 1.21 percent to close at
16831.56.
Analysts said large-caps fell in Shanghai yesterday after their
H-share counterparts also dropped, triggered by a
smaller-than-expected quarter-point interest rate cut in Hong Kong
after a US rate move.
The Hang Seng Index dropped 2.41 percent to close at 28521.06
yesterday. The Industrial and Commercial Bank of China fell 2.1
percent to close at HK$6.05, and its A shares tumbled 1.34 percent.
PetroChina slid 3.3 percent to close at HK$15.14, its shares
dropping 0.6 percent to close at 23.01 yuan.
Banking and real estate stocks were also hit in yesterday's
trading after the government clarified the definition of "second"
properties that are subject to higher mortgage deposits. The move
is expected to discourage many potential buyers from acquiring
properties for investment purposes.
"The supplementary notice defining a second home as a property
owned by the family of a mortgage applicant rather than the
applicant alone is expected to intensify cautious investor
sentiment and could trigger earnings drops for property
developers," said Wang Shujuan, an analyst at Orient
Securities.
Vanke A, one of China's largest property developers, plunged
3.96 percent to close at 31.02 yuan, and Poly Real Estate slid 4.64
percent to close at 65.54 yuan yesterday.
Consumer goods companies performed well after the government
said retail sales for November had shot up by 18.8 percent.
"Surging retail sales in November are above market expectations.
Inflation is likely to be the driving force behind increased
spending on food," said Shen Minggao, an economist at
Citigroup.
Shares in China Shipping Container Lines Co Ltd soared 74.77
percent to close at 11.57 yuan on its debut in Shanghai yesterday,
boosted by strong corporate earnings and Shanghai's fast
development. Its H shares plunged 12.48 percent to close at
HK$5.61.
(China Daily December 13, 2007)
