China markets fall on fear of property price collapse
China markets fell, led by real estate shares, on fear of a further collapse in property prices.
The Shanghai Comprehensive Index slid 0.48 percent to 2776.02. The small and medium enterprises SME Comprehensive Index added 0.06 percent to 4254.36.
The Hang Seng Index declined 1.80 percent to 18165.50. The Hang Seng Growth Enterprises Index retreated 1.89 percent to 574.88. The Hang Sang China Enterprise Index lost 1.48 percent to 10716.32.
Taiwan's TAIEX Index slid 0.08 percent to 6220.81.
Gold producers rallied on mainland markets but dropped on Hong Kong.
Zijin Mining Group Co.(SH:601899; HK:2899), the nation’s largest gold producer, rose 2.84 percent on Shanghai trading but dropped 3.39 percent on Hong Kong trading. Zhongjin Gold Corp.(SH:600489), the second largest, surged to the 10 percent trading cap. Shandong Gold (SH:600547), the third-largest, advanced 9.27 percent. Sino Gold (HK:1862), dropped 7.88 percent. Lingbao Gold (HK:3330) lost 4 percent.
PetroChina Co. (SH:601857; HK:0857), the world’s second-largest company by market capitalization, dropped 1.01 percent on Shanghai and 2.56 percent on Hong Kong after price of crude oil dropped for a third day.
Beijing Xidan Market Company Limited（SH:600723）rose 7.53 percent after Premier Wen Jiabao said the government must take further steps to stimulate consumption. Chongqing Department Store Co.(SH:600729) added 5.75 percent. Wuliangye Yibin Co. (SZ:000858), China’s second-largest liquor maker, advanced 4.08 percent.
Brokerages rise
Brokerages rose on the expectation the resumption of new share sales will boost revenues from their investment banking businesses. Citic Securities Co. (SH:600030), the brokerage unit of China’s biggest investment company, added 3.51 percent. Haitong Securities Co.( SH:600837), the country’s second- largest brokerage, rose 2.06 percent.
Contruction materials, cement make gains
China National Materials Co. (HK:1893) declined 3.79 percent after announcing to acquire shares of Gansu Qilianshan Cement Group Co. (SH:600720), shares of which rose 1.28 percent.
Shanghai Allied Cement (HK:1060) surged 9.84 percent.
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