SHANGHAI (Dow Jones)--China's shares ended lower Friday as investors sold heavyweight blue chips because of concerns the central bank will raise interest rates again.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended down 0.9% at 2871.70, after trading between 2851.95 and 2894.42. The Shenzhen Composite Index fell 0.4% to 1332.90. The Shanghai index is down 0.6% this week.
Analysts said the benchmark index will likely fall below psychological support at 2800 next week as liquidity conditions have worsened following two reserve requirement ratio hikes in the past month and October's benchmark interest rate hike.
"With the weekend approaching, investors are cutting their positions in case the PBOC is mulling fresh tightening measures" said Wang Bin, an analyst at Gold State Securities.
People's Bank of China adviser Li Daokui said in an interview on state television this week that by raising benchmark lending and deposit rates last month, the PBOC gave a signal to the market that interest rates may continue to be adjusted.
"New loans in the last two months of this year are expected to decline, and lending targets for next year may be lower too," said Wei Daoke, an analyst at Shenyin Wanguo Securities.
The state-run Shanghai Securities News reported Friday, citing an unnamed source, that China's new yuan loan target next year will be around CNY7 trillion, down from this year's CNY7.5 trillion.
Property firms led Friday's losses after the China Securities Journal reported that some Chinese investment banks have advised their clients in the property sector to turn to the Hong Kong bourse to raise money as China's securities regulator hasn't approved any fund-raising plans by developers in recent months.
Poly Real Estate Group was 3.1% lower at CNY12.47 and China Vanke fell 2.0% to CNY8.23.
Banks were also weak because of the tightening concerns, with China Everbright Bank down 2.3% at CNY3.87 and China Merchants Bank off 1.6% at CNY13.26.
Coal producers were the only bright spot Friday after Fang Junshi, the head of the National Energy Administration's coal department, said in an article published in the People's Daily on Friday that China should control coal output growth.
Gansu Jingyuan Coal Industry & Electricity Power rose 1.3% to CNY20.54 and Henan Shenhuo Coal was up 1.7% at CNY24.81.
-Wynne Wang contributed to this article, Dow Jones Newswires; (86-21) 6120-1200; [email protected]
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发表于 26-11-2010 09:49 AM
股海难测,人心更是难以自制
今天CIMB把TP设在$1.72,而现行股价只有$0.94,看来很吸引人.我很久之前已经买入,在等好消息
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