China Stocks Decline; Tighter Lending

123jump.com Staff
12 Apr, 2010
New York City

Stocks in Shanghai and Hong Kong declined after banks in Beijing tighten mortgage lending for second homes. Property developers led the decliners. Airlines closed higher on the expectations that strengthening yuan will help carriers to pay foreign debts.

[R]7:00 PM Hong Kong, China – Stocks in Shanghai and Hong Kong declined after banks in Beijing tighten mortgage lending for second homes. Property developers led the decliners. Airlines closed higher on the expectations that strengthening yuan will help carriers to pay foreign debts.[/R]

Markets in Shanghai and Hong Kong declined after the talks of tighter mortgage lending affected trading sentiment.

China Banking Regulatory Commission expanded the statement by Chairman Liu Minkang yesterday and said banks in Beijing have increased the down payment to 60% of second property purchase.

The statement from Minkang took market by surprise and property developers declined. Gemdale dropped 4.9% to 12.94 yuan and Poly Real Estate decreased 4.1% to 18.80 yuan.

Hang Seng index in Hong Kong decreased 70.33 or 0.32% to 22,138.17 and CSI 300 index in China lower 27.69 or 0.82% to 3,351.48.

Shanghai Movers

Air China Ltd increased 5.2% to 14.29 yuan and China Southern surged 9.2% to 9.13 yuan on the expectations that the currency will strengthen against the dollar. The higher currency will lower the foreign obligations values of the airlines.

Beijing Capital Tourism Co., Ltd the travel operator advanced 4.3% to 23.67 yuan.

China Railway Construction Corporation Limited the builder of more than half the nation’s rail links fell 0.4% to 8.36 yuan.

China Railway Group Limited dropped 0.7% to 5.71 yuan after the construction company said it won rail contracts worth a combined 43.7 billion yuan.

China Gezhouba Group Company Limited rose 2.4% to 14.82 yuan and the infrastructure company expanded in Mali and Kenya.

FAW Car Co., Ltd the automaker decreased 4.2% to 20.69 yuan.

PetroChina Company Limited slipped 0.3% to 12.76 yuan after the oil company is selling all its shares in a liquefied natural gas unit in Jiangsu province at a listed price of 500 million yuan or $73 million, according to a statement on the Beijing Equity Exchange Web site.

SAIC Motor Corporation Limited declined 1.6% to 20.11 yuan after the carmaker was upgraded to “buy” from “reduce” at Nomura Holdings Inc.

Shanghai Electric Group Company Limited the power equipment maker fell 0.4% to 9.76 yuan.

HK Movers

Agile Property Holdings Limited the condominium builder fell 7.0% to HK$10.22.

China Resources Land Limited the state-controlled developer dropped 4.2% to HK$16.42.

China Southern Airlines Company Limited rose 2.6% to HK$3.90 ahead of 2009 earnings to be released tomorrow.

Cosco Pacific Limited the operator of container terminals rose 1.6% to HK$12.70.

Esprit Holdings Limited rose 2.9% to HK$63.30.

Industrial and Commercial Bank of China Limited the most profitable lender in the world dropped 0.6% to HK$6.26.