Property, financial sectors lead market lower

By Pan Xiaoyi  |   2008-11-6  |     ONLINE EDITION

SHANGHAI’S key stock index fell more than 2 percent today, led by the financial and property sectors amid a gloomy market outlook.

The Shanghai Composite Index fell 2.44 percent, or 42.89 points, to 1,717.72 points, after reaching an intraday low of 1,703.10.

Losers outnumbered gainers 684 to 169 while 22 remained unchanged. Turnover in the local market shrank to 27.77 billion yuan (US$4.08 billion), compared to 38.80 billion yuan yesterday.

The Shenzhen Composite Index, which tracks the smaller domestic market, was down 1.67 percent, or 7.85 points, to 463.01 points.

Shares opened lower following plunges in US markets overnight. Financial and real estate shares dragged the index even lower.

“The government’s gesture of boosting consumption by expanding infrastructure construction fails to exert a long-term influence on the market,” Haitong Securities Co wrote in a research note.

Gemdale Corp, a Chinese partner of ING Group NV, slumped 6.15 percent to 4.73 yuan. Poly Real Estate Group Co, China's second-largest developer by market value, eased 5.15 percent to 12.52 yuan. Shanghai-based Shimao Property Co lost 2.33 percent to 4.62 yuan.

Hong Kong's Hang Seng Index fell and erased three days of gains on concern the global economy will worsen. State-owned bank shares fell in Hong Kong, leading to a sell-off in Shanghai.

China Merchants Bank Co retreated 5.04 percent to 12.07 yuan. Pudong Development Bank shed 4.94 percent to 12.13 yuan. Industrial and Commercial Bank of China, the nation’s largest lender, was off 0.81 percent to 3.69 yuan.

Coal producers also contributed to the losses on speculation prices for the power-station and steel-making fuel will continue to fall as the economy slows.

China Shenhua Energy Co, the nation's largest coal producer, dropped 3.87 percent to 17.37 yuan. Datong Coal Industry Co, China's second-largest coal company by capacity, fell 4.62 percent to close at 11.16 yuan.