Chinese shares drop 1.11% on banks, property developers

19:27, April 22, 2010      

Email | Print | Subscribe | Comments | Forum 

Chinese equities slid more than 1 percent Thursday, dragged down by banks and property developers.

The benchmark Shanghai Composite Index on the Shanghai Stock Exchange ended at 2,999.48 points, down 33.8 points, or 1.11 percent.

The Shenzhen Component Index dropped 0.53 percent, or 62.86 points, to close at 11,703.96 points.

Total turnover expanded to 279.83 billion yuan (40.97 billion U.S. dollars) from 271.39 billion yuan the previous trading day.

Losers outnumbered gainers by 485 to 376 in Shanghai, while gainers outnumbered losers by 497 to 385 in Shenzhen.

Concerns about the real estate market and a tightening in credit weighed after media reports said China's banking regulator has adopted stricter rules for the identification of a "second home" in assessing home loan applications.

Yang Jiacai, an official with the China Banking Regulatory Commission, told reporters Wednesday whether a house is a "second home" should be judged by property ownership at the family level and not the individual level.

Previously, the assessment was made based on the family's mortgage history or whether the family has an outstanding home loan.

China raised the down payment for second-home buyers to a minimum 50 percent of the purchase price from 40 percent last week in a bid to curb property market speculation.

Banks and property developers both fell, dragging the index below the psychologically important 3,000-point level.

Real estate stocks slumped 1.43 percent, with China Vanke Co., the country's largest property developer by market value, falling 2.59 percent to a year low of 7.9 yuan.

The financial sector slipped 2.18 percent as a report from China International Capital Corporation revealed new loans extended in the first three weeks of April amounted to a lower-than-market-expectations 140 billion yuan.

Bank of Communications, China's fifth largest bank by market value, dived 4.93 percent to 7.33 yuan while China Construction Bank, China's second largest bank, fell 2.99 percent to 5.19 yuan.

Source: Xinhua

(Editor:王千原雪)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based eastday.com reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion