Monday May 12, 05:29 AM
China B-shares end morning lower; property stocks hit by CPI data - UPDATE
BEIJING (XFN-ASIA) - China B-shares ended the morning lower with property stocks hit by fears of new credit-tightening measures after China's latest inflation data.
The National Bureau of Statistics announced today that the consumer price index (CPI (NYSE: CPY - news) ) rose 8.5 pct year-on-year in April, up from 8.3 pct in March. In the first four months of the year, CPI was up 8.2 pct.
A Nanjing-based analyst said property shares were under pressure because China may move to raise the bank reserve ratio or interest rates to curb inflation.
'The 8.5 pct growth in CPI in April means that the central bank is more likely to raise the reserve ratio requirement of commercial banks, but there is still the possibility for an interest rate hike,' he said.
'On the other hand, the release of CPI data also gives investors a clearer picture of the situation and a short-term rally may come in the next few days,' he said.
Real (Frankfurt: BJU.F - news) estate firms including Shanghai Jinqiao Export Processing Zone Development Co Ltd (600639.SS - news) (SHB (Xetra: A0F5WN - news) 900911; SHA 600639) and China Vanke (SZB 200002; SZA 000002) were hit hard.
The Shanghai B-share Index was down 2.05 points or 0.79 pct at 255.96 while the Shenzhen B-share Index was down 7.07 points or 1.26 pct at 554.88.
In Shanghai, Shanghai Jinqiao Export Processing Zone Development fell 3.17 pct to 1.04 usd, and Shanghai Lujiazui Finance & Trade Zone Development (SHB 900932; SHA 600663) fell 3.1 pct to 1.57 usd.
Jiangsu Xincheng Real Estate (SHB 900950) was down 2.51 pct at 0.82 usd, while Shanghai Wai Gaoqiao Free Trade Zone Development (SHB 900912; SHA 600648) decreased by 1.21 pct to 0.74 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 3.41 pct to 18.39 hkd and Shenzhen Special Economic Zone Real Estate (Group) (SZB 200029; SZA 000029) fell 2.54 pct to 2.69 hkd.
China Merchants Property Development (SZB 200024; SZA 000024) was down 1.96 pct at 15.0 hkd.
The FTSE/Xinhua China B 35 Index was down 102.14 points at 9,162.29.
The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, ended the morning down 19.78 points or 0.55 pct at 3,593.72.
(1 usd = 7.0 yuan)
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