China stocks close down Monday on interest rate hike

17:04, December 27, 2010      

Email | Print | Subscribe | Comments | Forum 

Chinese stocks weakened Monday after the nation's central bank hiked rates on Saturday and amid speculation further monetary policy tightening to combat inflation is in the offing.

The benchmark Shanghai Composite Index fell 1.9 percent, or 53.76 points, to finish at 2,781.4, following the central bank's decision to raise the benchmark one-year lending and deposit interests rate by 0.25 percentage points, its second rate hike in just over two months.

The Shenzhen Component Index fell 2.02 percent, or 253.66 points, to end at 12,303.19 points.

Combined turnover increased to 224.44 billion yuan (33.85 billion U.S. dollars) from 185.28 billion yuan the previous trading day.

Losers outnumbered gainers 834 to 76 in Shanghai and 1,125 to 89 in Shenzhen.

China's consumer price index (CPI), a main gauge of inflation, rose to a 28-month high of 5.1 percent year on year in November.

Besides hiking rates, China's central bank has increased banks' reserve requirement ratio six times this year, taking it to 19 percent for some banks.

Shares of property developers dropped. China Vanke, the nation's largest real estate developer, lost 2.89 percent to 8.75 yuan. China Everbright Bank fell 3.7 percent to 3.91 yuan. PetroChina, China's biggest oil producer, declined 2.28 percent to 11.16 yuan.

Coal producer shares gained 1.74 percent amid gains in international crude oil prices.

China Shenhua Energy Co., China's biggest coal producer, climbed 0.02 percent to 25.05 yuan


Source: Xinhua
  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Focus On China
  • Shanghai World Expo 2010
Major headlines
Editor's Pick
  • Tomb from Three Kingdoms period unearthed in Zhejiang
  • 'Mushroom cloud' floats above Tianshan Mountain
  • 7 die, 15 injured in 100-vehicle pile-up on SW China expressway
  • China marks 117th anniversary of Chairman Mao's birth
  • Heavy snow attacks NE, NW China
  • Tied up in knots ahead of Spring Festival
Hot Forum Dicussion