Monday May 12, 09:21 AM
China B-shares close lower led property stocks - UPDATE
BEIJING (XFN-ASIA) - China B-shares closed lower dragged down by properties, with sentiment likely dented after a strong earthquake hit southwestern China about half an hour before the close of trading, dealers said.
There were no reports of major damage at the time the market closed, particularly out of Sichuan, where the epicenter was located. Various agencies estimated the quake at between 7.5 and 7.8. The epicenter was near the provincial capital Chengdu, over 1,500 km from Beijing.
A Nanjing-based analyst said that the property shares were hit significantly by fears of further tightening in monetary policy.
'The release of CPI (NYSE: CPY - news) data triggered concern that the central government will adopt credit-tightening measure to curb inflation,' he said.
'At the moment there are no indications the earthquake influenced trading significantly although we may know more tomorrow,' he said.
Shanghai Lujiazui Finance & Trade Zone Development (SHB (Xetra: A0F5WN - news) 900932; SHA 600663) and China Vanke (SZB 200002; SZA 000002) led the declines.
The Shanghai B-share Index closed down 0.18 points or 0.07 pct at 257.83 while the Shenzhen B-share Index fell 1.90 points or 0.34 pct to 560.06.
In Shanghai, Shanghai Lujiazui Finance & Trade Zone Development fell 3.1 pct to 1.56 usd while Shanghai Wai Gaoqiao Free Trade Zone Development (SHB 900912; SHA 600648) fell 2.14 pct to 0.73 usd.
SVA Electron (SHB 900901; SHA 600602) tumbled 9.96 pct to 0.68 usd after it announced a plan to issue new shares and buy the 81.25 pct stake in Shanghai SVA Optronics which it does not currently own from two affiliates.
In Shenzhen, China Vanke shed 2.00 pct to 18.66 hkd and Shenzhen Special Economic Zone Real Estate (Group) (SZB 200029; SZA 000029) fell 1.45 pct to 2.72 hkd.
The FTSE/Xinhua China B 35 Index was down 41.48 points at 9,122.95.
The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed up 13.49 points or 0.37 pct at 3,626.98.
(1 usd = 7.0 yuan)
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