Equities slip again on fears of interest rate hike
SHANGHAI - Stocks on the Chinese mainland fell, dragging the benchmark index to its lowest level since September, on concern that the central bank will step up measures to control inflation.
Bank of China Ltd sank to the lowest price in more than two years as the Economic Information Daily reported that an interest-rate increase isn't "far away". Poly Real Estate Group Co had its biggest slump in two weeks after the 21st Century Business Herald said developers may cut home prices next quarter. Jiangxi Copper Co and PetroChina Co retreated at least 1.8 percent on lower metal and oil prices.
"As inflation is still running at a high level, speculation over another interest-rate increase is still dominating the market," said Liu Jianwei, a Shenzhen-based fund manager at Bosera Fund Management Co, which oversees more than $17 billion. "Investors are waiting for a clear signal that the government's monetary policies have reached a turning point."
