Stocks fall further, financials lose shine
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An Industrial and Commercial Bank of China Ltd (ICBC) booth at a financial expo in Beijing. On Thursday, ICBC's shares slid for the first time in nine days on the Shanghai Stock Exchange. Wu Changqing / for China Daily |
SHANGHAI - Stocks on the Chinese mainland fell for a third day, the longest losing streak this year, on speculation this quarter's rally may be excessive given the prospect the central bank will keep increasing interest rates to slow inflation.
Industrial and Commercial Bank of China Ltd (ICBC), the world's largest lender by market value, declined for the first time in nine days after saying credit may grow at the slowest pace in three years.
A gauge of financial companies dropped 1.1 percent.
Dongfang Electric Corp led declines for nuclear-equipment companies after China cut its nuclear power capacity targets following the Japanese nuclear crisis.
"Fighting against inflation is the focus of the government's work this year," said Liu Jianwei, who manages about $214 million at Bosera Asset Management Co. "Given the uncertainty at home and overseas, investors will keep cautious."
The Shanghai Composite Index slid 0.94 percent to 2928.11 as of the 3 pm close on Thursday.
The CSI 300 Index lost 1.01 percent to 3223.29.
ICBC dropped 1.11 percent. The bank plans to advance at least 820 billion yuan ($125 billion) of new loans this year, increasing its total outstanding by 13.2 percent, ICBC's Chairman Jiang Jianqing said on Wednesday.
China Construction Bank Corp slid 1.19 percent.
Bank of China Ltd lost 0.89 percent.
Dongfang Electric Corp, a power-equipment producer, which derived 6.5 percent of sales from nuclear power-related products in 2009, slid 1.59 percent to 27.22 yuan. It has fallen 20 percent since the March 11 Japan earthquake. China will cut its 2020 target for nuclear power capacity and build more solar farms following Japan's atomic crisis, said an official at the National Development and Reform Commission.
Jiangxi Copper Co dropped 1.70 percent to 38.85 yuan. Tongling Nonferrous Metals Group Co slid 2.34 percent to 27.96 yuan. Anhui Conch Cement Co dropped 1.17 percent to 40.52 yuan.
China plans to double annual retail sales to more than 30 trillion yuan in 2015 compared with 2010, the Shanghai Securities News reported on Thursday. The country may announce a plan to boost consumer spending in the five years from 2011 through 2015, the report said. The plan may be released as early as the end of April, the newspaper reported.
Bloomberg News
(China Daily 04/01/2011 page17)
