The Shanghai Composite Index lost 2.9 percent to 2,677.65. The CSI 300 Index retreated 3.3 percent to 2,944.71.
Airlines: China Southern Airlines Co., the nation’s largest carrier, fell 7.5 percent to 8.41 yuan, the lowest in four months. China Eastern Airlines Corp., the second largest, lost 5.3 percent to 6.23 yuan. Air China Ltd., the biggest international carrier, dropped 6.2 percent to 11.27 yuan.
“Extreme weather conditions may have a short-term impact on the airlines because of flight disruptions,” said Li Lei, an analyst at China Securities Co. in Beijing. China warned of heavy snow in Shanghai and surrounding regions today and tomorrow, the National Meteorological Center of China said. Continued snow in southern China may affect departures at cities in cities including Guizhou, Nanchang and Changsha, Guangzhou- based China Southern said in an e-mailed statement yesterday.
Banks: Industrial and Commercial Bank of China Ltd. (601398 CH), the nation’s largest, fell 1.9 percent to 4.15 yuan. China Construction Bank Corp. (601939 CH) slid 2.3 percent to 4.66 yuan. China’s banks extended more than 1 trillion yuan of new loans by Jan. 19, the 21st Century Business Herald reported, citing an unidentified person familiar with the situation. China Development Bank Corp. on Jan. 18 ordered its branches to halt lending for the remainder of the month, the newspaper reported, citing an unidentified person close to the bank.
Developers: China Vanke Co. (000002 CH), the largest developer, slid 4.7 percent to 8.14 yuan. Biggest rival Poly Real Estate Group Co. (600048 CH) lost 6.3 percent to 13.03 yuan. Shanghai may impose a tax on homes larger than 60 square meters per person in size, the Securities Times reported, citing an unidentified person. A tax of 0.6 percent or 0.8 percent may be levied on all such apartments, including if they are a person’s first home, the newspaper reported. A tax rate of 0.6 percent is the most likely, according to the report.
Aluminum Corp. of China Ltd. (601600 CH), the nation’s largest maker of the metal and called Chalco, surged 4.3 percent to 10.44 yuan, the biggest gain since Oct. 28. Aluminum Corp. of China, parent of Chalco, will take a controlling stake in the venture with Guangxi Nonferrous Metals Group, China Business News cited spokesman Yuan Li as saying. Two calls to Chalco’s board secretary Liu Qiang in Beijing went unanswered.
China Shipping Container Lines Co. (601866 CH) rose 3.1 percent to 4.93 yuan, the highest close since March 8. The company said it will return to profit in 2010 after a loss in 2009.
--Irene Shen, Helen Yuan. Editors: Allen Wan
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