China’s Stocks Fall, Erasing Gains, on Concern About Economy
China’s stocks fell, erasing earlier gains, on concern high borrowing costs may hurt efforts to revive growth in the world’s second-biggest economy.
Jiangxi Copper Co. led a decline for metal producers after a Bloombery survey of analysts found copper traders are the most bearish in four months on mounting concern that demand for industrial metals will weaken as growth slows. China’s biggest banks are resisting government pressure to lower borrowing costs amid an economic slowdown as they seek to maintain the profitability of their lending operations, officials at the top four lenders said.
“There’s still a lack of confidence so any gains is always short-lived,” said Zhou Lin, an analyst at Huatai Securities Co. in a telephone interview in Nanjing. “Investors need concrete evidence from economic data that we have reached a bottom. I don’t see that happening this year. And it seems hard to find an effective policy to boost the growth.”
The Shanghai Composite Index slipped 0.2 percent to 2,097.79 at 11:25 a.m. local time, erasing a gain of as much as 1.2 percent. The CSI 300 Index lost 0.4 percent to 2,293.34.
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