June 2 (Bloomberg) -- Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses as of 3 p.m. close.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 38.39 points, or 1.4 percent, to 2,705.18. The CSI 300 Index declined 1.6 percent to 2,955.71.
Automakers: FAW Car Co. (000800 CH), which makes passenger cars in China with Volkswagen AG, dropped 1 percent to 13.42 yuan. Chongqing Changan Automobile Co. (000625 CH), the Chinese partner of Ford Motor Co. and Mazda Motor Corp., lost 2.8 percent to 8.79 yuan.
China’s passenger car sales, excluding minivans, dropped 1 percent in May from a year earlier to 850,000 units, 21st Century Business Herald reported today, citing the country’s Passenger Car Association. Sales fell 11 percent last month from April, it said.
Banking stocks: China Construction Bank Corp. (601939 CH), the country’s second-largest bank, slid 3.4 percent to 4.88 yuan, its lowest close since March 18. Agricultural Bank of China Ltd. (601288 CH), the fourth biggest, fell 2.5 percent to 2.77 yuan.
China’s central bank urged “paying attention” to the credit risks of local-government financing vehicles because their debts have long maturities and are difficult to oversee. Some companies set up by provincial and municipal governments to fund infrastructure projects are unsustainable, the People’s Bank of China said in a report on its website late yesterday.
Developers: China Vanke Co. (000002 CH), the nation’s biggest listed property developer, slid 1.3 percent to 7.72 yuan, the lowest since July 16. Poly Real Estate Group Co. (600048 CH), the second largest, lost 2.9 percent to 9.05 yuan.
Chinese regulators have suspended property businesses at 10 domestic trust companies, Shanghai Securities News reported today, citing an unidentified person familiar with the situation. Property companies have been borrowing funds from trust companies as banks tighten lending, the report said.
China Satcom Guomai Communications Co. (600640 CH) jumped by the 10 percent daily limit to 11.95 yuan, the biggest gain since Aug. 30. The company plans to buy tourism and hotel assets worth 2.1 billion yuan ($323.9 million) from two affiliates through private share sales, China Satcom said in a statement last night. It also plans to sell assets including a paging business for 71.5 million yuan to parent China Telecommunications Corp.
Hunan Yonker Environmental Protection Co. (300187 CH) gained 1.8 percent to 52.35 yuan, the highest in a week. Citic Securities Co. initiated coverage of the company with a “buy,” saying Hunan Yonker’s stake purchase in a unit treating base metal pollution will boost earnings, Wu Fei and Wang Haixu, analysts at the brokerage, wrote in a report today.
Lontrue Co. (300175 CH), the nation’s biggest listed producer of dried fruit, jumped 5.5 percent to 16.85 yuan, its biggest gain since Feb. 16. The stock was rated “buy” in initial coverage at Citic Securities, which cited capacity expansion and fruit product exports. The brokerage set a share-price estimate of 20.8 yuan, analysts Mao Changqing and Shi Liang wrote in a report today.
Shandong Helon Co. (000677 CH), a manufacturer of fibers and yarns, plunged 9.2 percent to 4.83 yuan, the biggest slide since Nov. 12. The China Securities Regulatory Commission has started an investigation into the company on suspicion of violating the securities law, Shandong Helon said in a statement last night, without giving more details.
Yunnan Tin Co. (000960 CH), the world’s largest producer of the metal, retreated 1.1 percent to 28.85 yuan after saying it plans to diversify by setting up a copper-smelting unit. The board has approved 100,000 metric tons of copper-smelting capacity, it said.
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