BEIJING (XFN-ASIA) - China B-shares closed lower as investors locked in profits after gains last week driven by new support measures for the property sector, dealers said.
Property developers led the decline today after the government urged companies to sell at reasonable prices to boost sales.
The Shanghai B-share Index was down 0.90 point or 0.76 pct at 117.53, while the Shenzhen B-share Index fell 3.16 points or 1.09 pct to 286.02.
'Profit-taking emerged following a relatively quiet weekend, especially as the market has been awaiting a further cut in interest rates,' a Shanghai-based analyst who asked not be identified said.
'The government's call for the property sector to cut prices indicates that property prices have room to decline further. Some developers will find it hard to survive,' he noted.
The State Council, or cabinet, said in a statement that local governments should offer more housing for low-income families and encourage property developers to sell at reasonable prices.
Meanwhile, China will allow developers to raise funds through real estate investment trusts (REITs), it said.
In Shanghai, Wai Gaoqiao Free Trade Zone Development (SHB 900912; SHA 600648) fell 2.03 pct to 0.435 usd, while Lujiazui Free Trade Zone Development (SHB 900912; SHA 600648) shed 1.61 pct to 0.919.
Jiangsu Xincheng Real Estate (SHB 900950) was down 1.58 pct at 0.373 usd.
Telecom stocks were higher, with Shanghai Potevio (SHB 900930; SHA 600680) gaining 2.71 pct to 0.379 usd and Eastern Communications (SHB 900941; SHA 600776) rising 2.26 pct to 0.272.
Shanghai Diesel Engine (SHB 900920) jumped 5.94 pct to 0.428 usd.
In Shenzhen, China Merchants Property Development (SZB 200024; SZA 000024) fell 2.01 pct to 7.80 hkd, while China Vanke (SZB 200002; SZA 000002), the country's top property developer by market value, lost 2.15 pct to 6.38 hkd.
Shandong Airlines (SZB 200152) slipped 1.04 pct to 1.91 hkd.
Retailer Shenzhen International Enterprise (SZB 200056; SZA 000056) outperformed again after consolidating in the previous two sessions. The stock soared 5.56 pct to 3.99 hkd, bringing the rise to 91.83 pct this month so far.
The FTSE/Xinhua China B 35 Index lost 45.80 points or 1.10 pct to 4,134.23.
The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 30.71 points or 1.52 pct at 1,987.76.
(1 usd = 6.85 yuan; 7.8 hkd)
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