Top Biz News
Shares snap gains, end lower on profit-taking
(China Daily/agencies)
Updated: 2009-12-04 08:05
Mainland stocks fell for the first time in four days, led by property developers, as investors speculated recent gains outpaced prospects for earnings.
China Vanke Co, the largest developer, slid 1.5 percent to 11.58 yuan and Poly Real Estate Group Co declined 2.2 percent to 25.04 yuan. Baoshan Iron & Steel Co, the nation's biggest steelmaker, gained 3.6 percent after the National Development and Reform Commission said the industry made a profit.
The Shanghai Composite Index fell 5.12, or 0.2 percent, to 3264.63 at the close, halting a three-day, 5.6 percent advance. Signs that China's economic recovery is strengthening have driven the gauge up 17 percent this quarter, the fourth-best performer among 90 indexes tracked by Bloomberg worldwide. The CSI 300 Index fell 0.2 percent to 3590.88.
"The easy gains have been made and now the focus is on whether earnings growth will follow the economic rebound," said Daphne Roth, Singapore-based head of Asian equity research at ABN Amro Private Banking. "We're likely to see a period of increased volatility."
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Hang Seng firm
Hong Kong stocks gained for a fourth day, giving the Hang Seng Index its longest winning streak in three weeks, after the Federal Reserve said the US economy is improving, adding to optimism Asia's exports will increase.
The Hang Seng Index rose 1.2 percent to close at 22553.87.
Shares on the index are valued at an average 17.8 times estimated earnings, up from 10.6 times at the beginning of the year, according to data compiled by Bloomberg.
The Hang Seng China Enterprises Index gained 0.9 percent to 13459.06.
