Economics
China’s Stocks Decline to Two-Year Low on Slowing Profit Growth
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China’s stocks fell, driving the benchmark index to a two-year low, after profit growth for industrial companies slowed and a jump in interbank borrowing costs signaled the nation’s cash crunch is worsening.
Anhui Conch Cement Co. and SAIC Motor Corp. dropped more than 2 percent after a report showed industrial firms’ earnings growth in the first 11 months of the year decelerated. China Construction Bank Corp., the country’s second-largest bank, slid to a two-month low after interbank borrowing costs surged the most since June. China Vanke Co. and Poly Real Estate Group Co. led declines for developers after Soufun Holdings Ltd. said home transactions plunged last week.