The Shanghai Composite Index (SHCOMP), which tracks the bigger of China’s stock exchanges, fell 24.78 points, or 1.1 percent, to 2,191.15. The CSI 300 Index declined 1.6 percent to 2,339.11.
Property stocks: China Vanke Co. (000002) (000002 CH), the nation’s biggest listed property developer, fell 2.7 percent to 7.30 yuan. Poly Real Estate Group Co. (600048 CH), the second biggest, lost 1.7 percent to 9.91 yuan. China Merchants Property Development Co. (000024) (000024 CH) retreated 3.1 percent to 17.49 yuan.
Shanghai will continue to implement home purchase limits next year, the city government said yesterday, joining Qingdao, Guangzhou and Shenzhen in making similar moves. China’s Housing Ministry told local governments that have placed home purchase restrictions to extend those policies, the Shanghai Securities News reported today, without citing anyone.
Chongqing Brewery Co. (600132) (600132 CH) gained 0.7 percent to 31.61 yuan, reversing an intra-day loss of as much as 10 percent. The shares rose for the first time in 10 days. The beermaker and medicine company agreed to hold an extraordinary general meeting on Feb. 7 to discuss a proposal by Dacheng Fund Management Co., its third-biggest shareholder, to remove Chairman Huang Minggui as director, the company said in a statement.
Pang Da Automobile Trade Co. (601258 CH), China’s biggest listed auto dealer, tumbled 7.4 percent to 6.47 yuan, its lowest close since it began trading in Shanghai in April. The company said it will stop its bid to acquire Saab Automobile AB after the Swedish carmaker’s bankruptcy.
Ping An Insurance (Group) Co. (601318) (601318 CH), China’s second- biggest insurer, slumped 5.2 percent to 34.43 yuan, its biggest loss since Sept. 26. Ping An said it plans to sell as much as 26 billion yuan ($4.1 billion) of convertible bonds to boost working capital.
The sale will erode liquidity in the capital markets and will boost Ping An’s equity base by about 9 percent if the bonds are converted into stocks, Sun Ting, an analyst at Shenyin & Wanguo Securities Co., wrote in a report today.
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