Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses as of 3 p.m. close.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 19.71 points, or 0.7 percent, to 2,796.98. The CSI 300 Index (SHSZ300) declined 0.9 percent to 3,095.13.
Auto stocks: SAIC Motor Corp. (600104 CH), China’s largest carmaker, lost 2 percent to 18.03 yuan. FAW Car Co. (000800 CH), which makes passenger cars in China with Volkswagen AG, slid 2 percent to 14.31 yuan.
The rebound in Chinese auto stocks may falter because more local governments may introduce measures to limit car purchases, according to Sinolink Securities Co. Auto stocks don’t have “momentum” for further gains given the “sizeable” rebound they have made, Wu Wenzhao, an analyst at Sinolink Securities, wrote in a report today. The policy uncertainty the auto industry is facing is increasing after the southwest city of Guiyang in Guizhou province introduced purchase restrictions, according to the report.
Coal producers: Kailuan Energy Chemical Co. (600997 CH) jumped 3.7 percent to 17.49 yuan. Jizhong Energy Resources Co. (000937 CH) advanced 2 percent to 27.59 yuan. Both companies are based in China’s north Hebei province.
Hebei plans to consolidate the 340 coal companies in the region into 50 companies or less by the end of 2015, Shanghai Securities News reported today, citing a document from the local government.
Developers: China Vanke Co. (000002 CH), the nation’s biggest listed property developer, rose 1.6 percent to 8.49 yuan. Poly Real Estate Group Co. (600048 CH), the second largest, gained 2.9 percent to 10.99 yuan.
Some Chinese areas have stopped or eased government measures to limit property purchases on concerns a fast decline in home transactions would impact economic growth, Xinhua News Agency reported yesterday, without saying where it obtained the information.
China Merchants Bank Co. (600036 CH), the nation’s sixth- largest lender, slid 1.4 percent to 12.80 yuan, the lowest close since June 20. The bank said it plans to raise as much as 35 billion yuan ($5.4 billion) in a rights offer to shareholders in China and Hong Kong.
IRICO Display Devices Co. (600707 CH), a manufacturer of television picture tubes, fell 6.2 percent to 12.79 yuan, the third-biggest decliner on the Shanghai Composite today. The company may report a loss of 70 million yuan for the first half because of decreasing sales and product prices, IRICO Display said in a statement late yesterday. It posted a profit of 11 million yuan for the first half of last year.
Jiangsu Yongding Co. (600105 CH), a manufacturer of optical cable, jumped 4.7 percent to 12.74 yuan, the biggest gain since May 31. The government will boost development of the superconductor industry to reduce electricity loss on power-grid transmissions, Wang Hua and Meng Yeyong, analysts at Shenyin & Wanguo Securities Co., wrote in a report.
--Zhang Shidong. Editor: Allen Wan
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