Seems that all the good news from Fed and ECB aren’t doing any good for Chinese stocks.
Mainland Chinese markets are set for their worst loss in three weeks on Monday with the property sector a key drag, dampened by worries of more curbs which will crimp sales during the traditional peak season in late September and October.
Onshore weakness extended to offshore markets in Hong Kong, keeping the Hang Seng Index flat at midday with the benchmark index hovering at four-month highs it reached last Friday.
The CSI300 Index of the top Shanghai and Shenzhen listings went into the lunch break down 1.6 per cent, while the Shanghai Composite Index was down 1.3 per cent. Both indices are now set for their worst losses since Aug. 27.
“In this jittery market, any headlines on such a key sector are bound to trigger a reaction,” said Hong Hao, chief strategist at Bank of Communications International Securities.
Two of the biggest property developers listed in the mainland saw steep losses. Shenzhen-listed China Vanke lost 3.8 per cent, while Shanghai-listed Poly Real Estate dived 5.8 per cent.
In Hong Kong, China Overseas Land & Invesment shed 2.3 per cent, while China Resources Land slumped 4.6 per cent partly after media reports suggested the company may buy property from its parent.
A trader at a top Chinese brokerage said the sector was also hit by rumours of an extension of property taxes in the mainland.
Via – AsiaOne