Chinese stock drop led by developers | Shanghai Daily

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Chinese stock drop led by developers

CHINESE shares closed lower at the mid-day break, led by developers and financial heavyweights. However, some blue chips advanced in the late morning session, indicating major indexes may rebound, traders said.

The Shanghai Composite Index, which tracks the bigger mainland bourse, dropped 0.59 percent to finish the morning trading at 3,104.45. The Shenzhen Component Index, which covers the smaller market, lost 0.60 percent to 12,932.53.

Property counters led the decline as worries were mounting that the government might further tighten credit to developers as part of efforts to curb excessive expansion in real estate prices.

China Vanke Co, the nation's top listed developer, slumped 2.43 percent to 10.46 yuan (US$1.53). Poly Real Estate Group Co, the second largest, dived 2.98 percent to 21.48 yuan.

Bucking the downtrend, China Petroleum and Chemical Corp, Asia's biggest refiner, closed the morning at 13.17 yuan, up 1.54 percent, after dipping in early intraday trading. Baoshan Iron and Steel Co, China's biggest steel mill, added 0.94 percent to 8.58 yuan.

"As some heavy-weighted companies have shown signs of stabilizing, indexes may rebound late today or tomorrow," said Liu Yu, an Orient Securities Co trader. "However, volatility could stay amid concerns about growing inflation next year."



 

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