Stocks drop on tightening concerns

09:15, July 09, 2010      

Email | Print | Subscribe | Comments | Forum 

Mainland stocks dropped for the first time in three days, led by industrial companies and energy producers, as concern the government will step up tightening measures overshadowed rising earnings.

The Shanghai Composite Index declined 5.97, or 0.3 percent, to close at 2415.15, erasing earlier gains and snapping a two-day, 2.5 percent rebound. The CSI 300 Index slipped 0.2 percent to 2575.92.

Deputy central bank Governor Ma Delun said the People's Bank of China's monetary policy faces many new challenges as its focus moves from money supply to controlling inflation, the Shanghai Securities News reported.

China's wages will increase by an average of between 15 percent and 20 percent annually for unskilled labor in the next five to 10 years, according to Citigroup Inc analyst Eddie Lau on Thursday. The rise in income should boost discretionary spending, benefiting department stores and distributors of appliances, according to the report.

The rate of the tax on oil, gas and coal extractions will be set at 5 percent and will vary across commodities, Du Ying, vice-chairman of the National Development and Reform Commission, said in Beijing on Thursday.

The CSI 300 is in a "good position" to rebound after dropping more than any other Asian stock measure this year, according to technical analysis by Nomura Holdings Inc.

The CSI 300 has touched the bottom band that marked its downward trend this year and may rebound should that band hold, Nomura analysts Kenneth Chan, Tacky Cheng and Desmond Chan wrote in a report on Wednesday.

Hang Seng gains

Hong Kong stocks rose, driving the Hang Seng Index higher for the second time in three days, after a trade group said US retail sales climbed and the International Monetary Fund raised its global growth forecast. The Hang Seng Index climbed 1 percent to close at 20050.56.

Source:China Daily

(Editor:黄蓓蓓)

  • 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. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion