Chinese stocks fell, dragging the benchmark index to its biggest weekly decline this month, amid concern the economic slowdown will hurt earnings and that more cities will take steps to limit property-price increases.
Poly Real Estate Group Co. (600048), China’s second-largest developer by market value, sank the most in almost four weeks after a Guangzhou newspaper reported the city is studying property curbs. Kweichow Moutai Co., the nation’s biggest liquor maker by market value, dropped to an 11-week low.
The Shanghai Composite Index (SHCOMP) lost 1.5 percent to 1,992.65 at the close, taking its decline this week to 2.3 percent. The gauge lost 12 percent in 2013 as the economy slowed and money-market rates reached record highs. While China Central Television reported Premier Li Keqiang as saying the government can achieve major economic development goals this year, the official Xinhua News Agency said yesterday the nation faces a complex “external environment” in the second half of the year.
“What the government is signaling is that the economy is in good shape at least for the year,” said Dai Ming, a money manager who helps oversee $19 million at Hengsheng Hongding Asset Management Co. “But the market is concerned that the government has fewer tools now to stabilize the economy than before. Volatile sentiment will dominate the market.”
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