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Shanghai equities at lowest since Oct

(China Daily)
Updated: 2010-02-03 08:04

SHANGHAI: Mainland stocks fell, as concern the government will curb lending spurred declines by developers and overshadowed gains by commodity producers.

The Shanghai Composite Index fell 6.65, or 0.2 percent, to close at 2,934.71, the lowest since Oct 12. The gauge gave up gains of as much as 1.7 percent and moved into negative territory in the last half hour of trading. The CSI 300 Index fell 0.2 percent to 3,146.19.

"Any rebound is seen as a good opportunity to sell," said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. "As long as concern about tightening persists, any gains are unlikely to be sustained."

Property stocks have led the losses.

Beijing Capital slid 2.4 percent to 16.51 yuan, the lowest since April 30. Shanghai Shimao Co retreated 2.7 percent to 13.89 yuan, capping a 17 percent annual decline. China Vanke Co dropped 1.4 percent to 9.28 yuan.

The Shanghai Composite's property index has slumped 12 percent this year, the worst performer among the five industry groups. It closed yesterday at its lowest level since April 29.

China Eastern Airlines Corp lost 5.1 percent to 5.99 yuan, its biggest loss since February 2009, after 1.4 billion new shares became tradable. The new shares were issued as part of the carrier's takeover of Shanghai Airlines Co.

Zijin Mining Group Co jumped 5.9 percent to 8.51 yuan, its biggest advance since Dec 1. Jiangxi Copper Co gained 2.3 percent to 33.62 yuan.

Hang Seng firm

Hong Kong's benchmark stock index rose in volatile trading, as retailers gained on expectation of higher holiday spending, and developers climbed after the city's home sales more than doubled last month.

"This is a short-term rebound, I would be selling stocks at this point," said Danny Yan, a portfolio manager at Taifook Asset Management Ltd in Hong Kong. "Sectors such as agriculture, consumer spending, environmental protection would be doing quite good in the long run. They should not be affected much by the credit tightening of the government."

The Hang Seng Index added 0.1 percent to close at 20,272.18, after climbing as much as 1.4 percent and dropping as much as 0.3 percent. The Hang Seng China Enterprises Index slid 0.4 percent to 11,570.35, erasing gains of as much as 1.9 percent.

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