Shares down on economic deceleration
SHANGHAI - Mainland stocks fell for a third day after manufacturing grew slower than expected last month and property transactions dropped in major cities, signaling a deceleration for the world's third-biggest economy.
Poly Real Estate Group Co led declines among developers after Shanghai Securities News reported fewer real estate closings in Beijing and Shanghai. Industrial companies including Anhui Conch Cement Co fell after the Purchasing Managers' Index slid to 53.9 from 55.7 in April. PetroChina Co gained after China announced it will raise gas prices.
"Growth is slowing but it's still unlikely the government will delay the exit of stimulus plans implemented during the financial crisis," said Zhang Ling, a fund manager at Shanghai River Fund Management Co. "The government wants to see a shift in its growth model to consumption from investment and exports. It would rather sacrifice some growth to achieve that purpose."
