Markets

Property developers drive Chinese share market lower - Sept 1

(Xinhua)
Updated: 2010-09-01 16:19

BEIJING - Chinese stocks dropped slightly Wednesday, pulled down by property stocks amid concern the government will not anytime soon ease its tightening measures aimed at curbing soaring house prices.

The benchmark Shanghai Composite Index fell 15.92 points, or 0.6 percent, to close at 2,622.88.

The Shenzhen Component Index slid 19.98 points, or 0.18 percent, to end at 11,318.74.

Combined turnover rose to 280.51 billion yuan ($41.25 billion) from 259.2 billion yuan the previous trading day.

Losers outnumbered gainers 652 to 219 in Shanghai and 369 to 114 Shenzhen.

Property stocks fell Wednesday after China's banking regulator said Tuesday it will restrain speculative property investment and support the building of affordable housing while controlling risk.

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Housing prices in major Chinese cities rose 10.3 percent year on year in July, slower than the 11.4 percent growth rate in June, according to data from the National Bureau of Statistics.

Poly Real Estate Group Co, China's second-largest developer by market value, dropped 1.25 percent to 11.85 yuan per share while Gemdale Corp, the fourth largest developer, retreated 1.05 percent to 6.57 yuan per share.

Brokerages also posted widespread losses Wednesday after Southwest Securities Co, China's leading brokerage, reported a 63 percent decline in first-half profit due to squeezed commissions caused by falling stock trading volumes amid a fluctuating market.

The company's shares fell 3 percent to 13.23 yuan per share while CITIC Securities Co, the country's largest brokerage by market value, dropped 1.28 percent to 11.57 yuan per share.

CITIC Securities' first-half profit fell 31 percent to 2.63 billion yuan, the company said in a statement filed with the Shanghai Stock Exchange in August.