China markets down as metal prices retreat and property developers take a hit
China markets fell today, led by non-ferrous metal and property shares, as metal prices dropped and investors worried about the quality of house loans.
The Shanghai Comprehensive Index fell 3.19 percent to 2962.67, ending the week with a loss of 0.91 percent. The Shenzhen Composite Index retreated 3.29 percent to1030.10. The Small and Medium Enterprises Comprehensive Index declined 2.99 percent to 4762.64.
The Hang Seng Index lost 0.67 percent to 21623.45, paring the weekly gain to 2.18 percent. The China Enterprises Index, which tracks key mainland companies listed in Hong Kong, slid 0.42 percent to close at 2614.57. The Hong Kong Growth Enterprise Board Index added 0.01 percent to 660.35.
Taiwan's Taiex Index advanced 0.66 percent to 7526.55.
Nonferrous metal shares dropped as metal futures dropped in Shanghai.
Zijing Mining (SH:601899; HK:2899), China's largest gold producer, plunged 5.03 percent in Shanghai and 4.67 percent in Hong Kong after gold futures dropped 1.13 percent in Shanghai. Jiangxi Copper Co.(SH:600362; HK:0358), the nation's largest producer of the metal, lost 5.14 percent in Shanghai and 2.20 percent in Hong Kong as Shanghai copper futures declined 2.27 percent.
Xiamen Tungsten Co.(SH:600549), world's largest tungsten processor, plunged 7.31 percent. China Rare Earth Holdings (HK:0769) lost 1.55 percent.
China's property shares dropped after bank regulators warned the risk of housing loans. Mainland-listed property shares lost 4.85 percent on average. The Hang Sang Property Index declined 1.77 percent.
China Vanke Co. (SZ:000002), the nation's largest listed developer, fell 4.78 percent. Poly Real Estate Group Co. (SH:600048), the second-largest, lost 4.9 percent. Gemdale Corp., the fourth-largest developer (SH:600383), dropped 6.16 percent. Sun Hung Kai Properties Ltd.(HK:0016), the world's biggest property developer by market value, retreated 1.46 percent. Sino-Ocean Land Holdings (HK:3377) lost 4.94 percent.
This year's rise in lending is increasing risks for the nation's banks, Liu Mingkang, chairman of the China Banking Regulator Commission, said today. The Ministry of Finance said in late July that many of this year's new loans ended up in the housing market.
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