China’s Stocks Decline on Property Tax Concern

Chinese stocks fell, dragging down the benchmark index by the most in a week, on speculation the government will expand a property tax and after a Japanese report showed shipments to China declined last month.

China Vanke Co. led real-estate companies to the biggest decline among the Shanghai Composite Index’s industry groups after the Legal Evening News reported Hubei province is proposing property-tax rules. China Shipping Development Co., part of the nation’s second largest sea-cargo group, fell 2.2 percent after posting its first half-year loss since at least 1998. Anhui Quanchai Engine Co. slumped 3.4 percent after a unit of China Rongsheng Heavy Industries Group Holdings Ltd. cancelled a bid for Anhui Quanchai’s parent.