China Stocks 6-day Rally Halts; Agriculture Stocks Fall, Property Prices Rise

Marcus Jacob
18 Feb, 2011
New York City

Stocks in China fell after real estate prices increased in January from December. The persistent increase in prices stock speculation that another round of bank reserve ratios may start as early as next week. Agriculture stocks fell on the worries that drought may extend till the February.

[R]5:30 PM Hong Kong – Stocks in China came under pressure after real estate prices increased in January from December. The persistent increase in prices stock speculation that another round of bank reserve ratios may start as early as next week. Agriculture stocks declined on the worries that drought may extend till the end of February.[/R]

Stocks in Shanghai and Shenzhen trading declined on the worries that banks may be asked to increase reserves as home prices rose in January.

Agriculture related stocks declined on the worries that drought may persist in wheat growing region till the end of the month.

The Shanghai Composite Index declined 0.9% or 27.17 to close at 2,899.79 and the Shenzhen Component Index dropped 1.4% or 175.22 to close at 12,613.11.

Decliners exceeded gainers with 619 to 273 in Shanghai and 926 to 329 in Shenzhen.

Property developers closed mixed after statistics bureau said property prices increase in 60 of the 70 major cities from the previous month.

Hang Seng index increased 1.3% to 23,595 tracking the gains in New York and in international markets.

Stock Movers

Agriculture and food related stocks declined. Fujian Sunner Development Co. Ltd dropped 4.1% to 37 yuan and Hunan Jinjian Cereals Industry Co. Ltd fell 5.2% to 8.90 yuan.

China Vanke, the largest mainland developer decreased 0.2% to 8.35 yuan and Poly Real Estate Group Co gained 0.08% to 12.96 yuan.

Anhui Conch Cement in Shanghai declined 1.9% and in Hong Kong fell 1.1%.

Steelmakers declined for the second day in a row. Baoshan Iron & Steel dropped 2.6% and Mannshan Iron in Shanghai declined 1.6% and in Hong Kong fell 1.2%.

Resources linked stocks declined as base metal and other commodities edged lower. Jiangxi Copper decreased 2.7% to 41.77 yuan and Aluminum Corp of China fell 0.5% in Hong Kong and 0.6% in Shanghai.