China Stocks: ICBC, Huaxin, Kweichow Moutai, Vanke, Wuliangye
Banks: China needs to raise interest rates by another 200 basis points to curb inflation given existing excess liquidity, Zhong Jiyin, an economist with the Chinese Academy of Social Sciences, wrote in a commentary in the China Daily today.
Industrial & Commercial Bank of China Ltd. (601398 CH), the nation’s largest lender, declined 2.1 percent to 4.20 yuan, the lowest since Oct. 13. China Construction Bank Corp. (601939 CH) fell 1.7 percent to 4.62 yuan.
Huaxin Cement Co. (900933 CH) gained 3 percent to 2.40 yuan, the most in two weeks. The company announced a plan to buy a cement maker in the central province of Hubei.
Property Developers: Moody’s Investors Service said that it has a stable outlook for China’s property sector, although a “moderate downward correction” is expected in prices during 2011.
Consumer Staples Producers: A gauge of consumer staples companies in the CSI 300 Index slid for the first time in nine days, losing 4.6 percent, on speculation this month’s gains were excessive. The index has rallied 8.1 percent in November, the most among the 10 industry groups.
Kweichow Moutai Co. (600519 CH), a spirits maker, fell 5.4 percent to 204.81 yuan, narrowing this month’s gains to 25 percent. Rival Wuliangye Yibin Co. (000858 CH) dropped 4 percent to 39.13 yuan, trimming the November advance to 4.4 percent.
To contact Bloomberg News staff for this story: Allen Wan in Shanghai at +86-21-6104-3041 or email@example.com
To contact the editor responsible for this story: Darren Boey at firstname.lastname@example.org