The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 46.99, or 1.7 percent, to 2,791.81 at the 3 p.m. close. The CSI 300 Index declined 1.9 percent to 3,108.19. Stock symbols are in parentheses after company names.
Developers: China Vanke Co. (000002 CH), the biggest developer, fell 1.7 percent to 8.74 yuan. Poly Real Estate Group Co. (600048 CH), the second biggest, lost 3 percent to 13.96 yuan.
The municipality of Chongqing may impose a luxury-property tax in the first quarter and Shanghai may introduce a tax on new homes around the same time, the official Xinhua News Agency and Shanghai Securities News paper said today.
The Ministry of Finance has agreed in principle to the levy in Chongqing and will leave the southwest city to work out the details, Xinhua said, citing unidentified sources from the local National Peoples’ Congress meeting over the weekend. Shanghai’s tax will apply to new homes and come into effect in the first quarter, Securities News reported, citing unidentified officials from the city’s government.
China Minsheng Banking Corp. (600016 CH), the nation’s first privately owned bank, advanced 1 percent to 5.08 yuan after saying it plans to raise about 21.5 billion yuan ($3.2 billion) in a private share sale in Shanghai. The stock resumed trading today after being suspended on Jan. 7.
Datang Telecom Technology Co. (600198 CH), a manufacturer of telecommunication equipment, plunged by the 10 percent daily limit to 17.85 yuan after the company said the China Securities Regulatory Commission rejected its plans for a private share placement.
Guangzhou Iron and Steel Co. (600894 CH) added 2.3 percent to 7.96 yuan after the company said it will swap its steel assets for an elevator company. Guangzhou Steel will swap all its steel assets for a 92 percent stake in an elevator company owned by Guangri Group, according to a company statement to Shanghai’s stock exchange. The stock resumed trading today after suspension starting Nov. 8.