Markets dragged down by realty sector

Markets were rattled by strong comments from the government about tackling surging housing prices and continuing structural reforms.

China’s equities markets were hit by their biggest falls in a month yesterday.

The Shanghai Composite Index shed 1.80 percent, or 51.87 points, after early gains to close at 2824.53. 

The Shenzhen Component Index declined by 1.89 percent to 9005.37 points, while the Nasdaq-style ChiNext enterprise board slumped by 1.24 percent to finish at 1541.86.

The Chinese government stressed again on Tuesday they were resolute in tackling problems facing the housing market and curbing price rises, sending stocks in the real estate and iron and steel sectors down.

State-owned Poly Property Group Co Ltd saw its shares drop by 6.60 percent to close at 11.33 yuan (US$1.67).

HuaChuang Securities noted that the government will roll out more targeted regulatory action in the second half.

Market sentiment was also affected by a Reuters report that the Trump administration would propose a larger 25 percent tariff on US$200 billion worth of Chinese goods.


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