China markets down as Rio probe widens
China markets dropped, led by steel makers, after iron-ore spot prices rose as much as 5 percent this week and the Rio Tinto espionage probe widened to involve a Chinese steel mill. The Shanghai Comprehensive Index lost 0.29 percent to 3113.93, trimming the weekly gain to 0.83 percent. The SME Comprehensive Index slid 0.10 percent to 4567.00. The Hang Seng Index dropped 0.49 percent to 17708.42, enlarging the weekly loss to 2.72 percent.
The Hang Seng Growth Enterprises Index rose 0.54 percent to 573.20, erasing losses in the last five minutes of trading. The Hang Seng China Enterprise Index lost 0.63 percent to 10574.42
Several stocks listed on Hong Kong’s Growth Enterprise Board surged towards the end of trading. Jian Epayment System (HK:8165) rose 9.50 percent. Zhejiang Shibao Co. (HK:8331) surged 9.09 percent. Prosten Technology Holdings (HK:8026) climbed 8.16 percent.
Taiwan’s TAIEX Index added 0.32 percent to 6769.86.
Two Shenzhen IPOs up 82pct and 125pct
Guilin Sanjin Pharmaceutical Co. (SZ:002275) China’s largest maker of herbal lozenges, closed 81.9 percent higher than the offer price. Zhejiang Wanma Cable Co. (SZ:002276) rose 125.48 percent
Steelmakers drop as iron-ore prices rise and Rio probe widens
Beijing Shougang Co.(SZ:000959) retreated 1.88 percent after media reported one of its management was detained in relations to the Rio Tinto espionage probe.
Baoshan Iron and Steel Co. (SH:600019), China’s largest steel maker, declined 1.22 percent Angang Steel Co. (SZ:000898;HK:0347) lost 2.43 percent on Shenzhen trading and 2.51 percent on Hong Kong trading. Maanshan Iron and Steel Co. (SH:600808; HK:0323) declined 1.26 percent on Shanghai and 1.88 percent on Hong Kong. Chongqiong Iron and Steel Co. (SH:601005;HK:1053) climbed 2.61 percent.
Property and related shares rise again
Developers climbed after urban house prices rose for the first time in seven months in June. Poly Realestate Co.(SH:600048), the second-largest developer, added 2.02 percent. Changchen Investment Holdings (SZ:000042) surged to the 10 percent trading cap. COFCO Property (Group) Co.(SZ:000031) climbed 7.77 percent.
Shui On Land (HK:0272) added 1.39 percent. Agile Property Holdings (HK:3383) rose 1.36 percent. Hopson Development Holdings (HK:0754) climbed 1.23 percent.
House prices in 70 major cities added 0.2 percent in June from a year earlier, the National Development and Reform Commission said today. Home values increased 0.8 percent from May, the fourth straight monthly gain.
Home appliance makers gained on speculation increasing property sales will boost demand for white goods.
Haier Electronics Group Co.(HK:1169) surged 12.04 percent.Gree Electric Appliances Inc.(SH:000651), China’s largest maker of home air-conditioners, jumped 5.76 percent. GD Midea Holding Co.(SZ:000527), the nation’s second-biggest publicly traded appliance maker, added 4.20 percent.
Construction and construction material shares also advanced.
Shenzhen Universe (Group) Co.(SZ:000023) surged to the 10 percent trading cap. China State Construction International Holdings (HK:3311) rose 3.04 percent.
Prosperity International (HK:0803), a cement producer, added 4.35 percent. China Glass Holdings (HK:3300) climbed 4.08 percent. Wuhu Conch Profiles and Science Co. (SZ:000619), a household decor manufacturer, advanced 3.38 percent.
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