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Shanghai shares retreat, led by developers
Aggregated Source: Shanghai Daily: Business

SHANGAHI stocks declined this morning for five days running, led by property developers who worry about further tightening of the housing market.

The benchmark Shanghai Composite Index fell 1.2 percent to 2,260 points. Turnover was 44.2 billion yuan (US$7 billion) by midday.

Poly Real Estate, China's second largest developer, led the decline of developers after a report on said authorities in Shenzhen, Guangdong Province, have ordered developers to sell new homes at prices no more than that in February.

Gemdale Corporation dropped 4.1 percent to 6.08 yuan. Shanghai Xinmei Real Estate Co lost 3.7 percent to 5.95 yuan.

Dongguan Securities said that property shares would be under pressure in the short term as local governments took measures to prevent the real estate market from heating up again.

Cement producers also declined on concerns that market demand will shrink due to a cooling property market. Anhui Conch Cement Co, China's biggest cement producer, lost 2 percent to 17.67 yuan. Gansu Qilianshan Cement Group Co dropped 1.5 percent to 10.17 yuan. Shaanxi Qinling Cement Co slumped 4.4 percent to 5.63 yuan.

Insurers retreated among financials. China Life Insurance, the country's biggest insurer, shed 2.3 percent to 17.18 yuan. Ping An Insurance Co, the second largest insurer, lost 1.6 percent to 42.55 yuan. China Pacific Insurance (Group) Co sank 1.8 percent to 18.73 yuan.

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Copyright Shanghai Daily: Business