BEIJING (XFN-ASIA) - China A-shares finished the morning session lower in
cautious trade ahead of the release of the April consumer price index.
The National Statistics Bureau is due to announce CPI data Monday with
analysts expecting April growth to remain above 8 pct.
Banks and property developers led the declines.
The benchmark Shanghai Composite Index ended the morning down 70.58 points
or 1.93 pct at 3,586.26.
It retreated from an intraday high of 3,693.16 reached after Ping An
Insurance said it would not seek to raise funds before November.
"The April CPI, although it may be lower than March's 8.3 pct, is expected
to remain above 8 pct," said Hua Xin, an analyst at Founder Securities.
Judging from comments made by central bank governor Zhou Xiaochuan, "we
cannot rule out the possibility of further interest rate hikes," Hua added.
Rising crude oil prices are also worsening the inflation picture, Hua said.
China Construction Bank (SHA 601939; HK 939) fell 3.58 pct to 7.55 yuan,
while Bank of Communications (SHA 601328; HK 3328) lost 3.78 pct to 9.41 yuan.
Industrial and Commercial Bank of China (ICBC) (SHA 601398; HK 1398), the
country's largest commercial bank, shed 3.01 pct to 6.12.
Shanghai Pudong Development Bank (SHA 600000) tumbled 5.34 pct to 28.01 and
Shenzhen Development Bank (SZA 000001) fell 5.63 pct to 26.00. China Merchants
Bank (SHA 600036) was down 6.00 pct at 31.00 yuan.
Ping An Insurance (Group) Co of China (SHA 601318; HK 2318), the country's
second largest insurer, gained 0.83 pct to 63.20 yuan, off a high of 66.66 yuan.
The company said it will not file an application to issue new A-shares in the
next six months.
China Life Insurance (SHA 601628; HK 2628) fell 1.58 pct to 33.65 yuan,
while China Pacific Insurance (SHA 601601) was down 1.40 pct at 26.85.
Haitong Securities (SHA 600837) tumbled 5.94 pct to 54.00 yuan and CITIC
Securities (SHA 600030) fell 4.02 pct to 36.80.
Shang Fulin, chairman of the China Securities Regulatory Commission, said at
the Lujiazui financial forum in Shanghai this morning that China has no
timetable for launching margin trading.
Last week, the Economic Observer reported that China expects to launch
margin trading trials this month with three brokerages chosen for a pilot
program - CITIC Securities, Haitong Securities and China Jianyin Investment
Securities.
China Merchants Property Development (SZA 000024; SZB 200024) lost 4.19 pct
to 20.60 yuan, while Poly Real Estate (SHA 600048) slipped 6.00 pct to 20.20
yuan. China Vanke (SZA 000002; SZB 200002) tumbled 5.86 pct to 21.67.
PetroChina (SHA 601857; HK 0857), the biggest index component, was down 1.11
pct at 17.79 yuan, while China Petroleum & Chemical Corp (Sinopec) (SHA 600028;
HK 0386; NYSE SNP) lost 4.39 pct to 11.99 yuan.
The Shanghai A-share Index fell 74.21 points to 3,762.87, while the Shenzhen
A-share Index was down 14.37 points at 1,143.63.
The FTSE/Xinhua China A 50 Index was down 372.01 points at 14,035.83 and the
FTSE/Xinhua China A 200 Index fell 219.29 points to 10,704.71.
(1 usd = 7.0 yuan)
allen.shu@xfn.com
-
xfnals/xfntm
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|