The Shanghai Composite Index (SHCOMP), which tracks the bigger of China’s stock exchanges, fell 1.6 percent to 2,224.11, the lowest since Jan. 16. The index has lost 6.2 percent this month. The CSI 300 Index (SHSZ300) declined 2.2 percent to 2,456.52.
Coal producers: China Shenhua Energy Co. (601088) (601088 CH), the nation’s largest coal producer, sank 3.3 percent to 22.61 yuan, the lowest close since Sept. 21, 2010. China Coal Energy Co. (601898 CH), the second biggest, slid 2.9 percent to 7.96 yuan. Datong Coal Industry Co. (601001 CH), the third largest, tumbled 4.4 percent to 11.37 yuan.
China’s benchmark power-station coal price at Qinhuangdao port declined the most in more than three years. Coal with an energy value of 5,500 kilocalories per kilogram fell 7.2 percent to a range of 670 yuan ($105) to 690 yuan a metric ton as of yesterday, according to the China Coal Transport and Distribution Association today. That’s the biggest decline since December 2008, and the first time prices have fallen below 700 yuan since April 2010, the data show.
Property stocks: China Vanke Co. (000002) (000002 CH), the nation’s biggest listed property developer, retreated 3.1 percent to 8.75 yuan. Poly Real Estate Group Co. (600048 CH), the second largest, lost 4.9 percent to 10.94 yuan. China Merchants Property Development Co. (000024 CH), the third biggest, slumped 5.8 percent to 23.41 yuan.
China should impose a “reasonable” property tax to ensure the sustainable development of the housing market, according to a State Information Center report published in the China Securities Journal today. China should expand the property tax base while reducing tax rates to help ease high prices, the report said.
--Zhang Shidong. Editor: Darren Boey
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