The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 84.68, or 3 percent, to 2,706.66 at the 3 p.m. close. The CSI 300 Index declined 3.8 percent to 2,974.35. Stock symbols are in parentheses after company names.
Banking stocks: Industrial & Commercial Bank of China Ltd. (601398 CH), the nation’s biggest listed lender, dropped 2.8 percent to 4.23 yuan. China Construction Bank Corp. (601939 CH), the second biggest, lost 4.2 percent to 4.71 yuan.
China told banks to set aside more deposits as reserves for the fourth time in just over two months. Reserve ratios will increase 50 basis points starting Jan. 20, the People’s Bank of China said on its website on Jan. 14 after the market closed.
Developers: China Vanke Co. (000002 CH), the nation’s biggest listed property developer, plunged 7 percent to 8.42 yuan. Poly Real Estate Group Co. (600048 CH), the second biggest, slumped 8.7 percent to 13.60 yuan.
Property prices in 70 cities gained 6.4 percent in December from a year earlier, slowing for an eighth month, China Information News, the statistic bureau’s newspaper, reported today. Separately, Shanghai will this year prepare for a trial property tax, becoming one of the first cities in the nation to introduce the measure aimed at curbing “speculative” investment, Mayor Han Zheng said in a speech to the Municipal People’s Congress yesterday, without giving details.
Beijing Originwater Technology Co. (300070 CH), a partner with Mitsubishi Rayon Co. in a wastewater-treatment venture, advanced 0.9 percent to 113 yuan. The company forecast that 2010 net income will have increased by as much as 80 percent to 193 million yuan ($29.2 million) because of increased sales.