FX.co ★ Shanghai Stock Market Review

China stocks ended lower due to decreasing energy and property companies shares. Shanghai Composite closed down 0.71% at 2946.40.
Shares of oil companies fell as China did not raise domestic oil product prices today. Shares of property companies slid on concerns over more fund raising after China Vanke announced plat to raise up to CNY11.2 billion by issuing new shares.
Also, China stock market lower on higher inflation concerns that affected recent price rises. But, according to China’s National Development and Reform Commission, “overall price levels are unlikely to rise significantly as the country’s supply and demand are basically in balance and grain reserves are sufficient”.

Among decliners are China Vanke down 1.5% at CNY10.79, Poly Real Estate down 1.0% at CNY24.44, Petro China down 2.2% at CNY14.08, Sinopec down 3.2% at CNY13.01, but Air China up +4.8% at CNY8.29.
China government bonds were lower today on IPO-related liquidity concerns after CSRC approved Metallurgical Corp. of China’s up to 3.5 billion A-share IPO plan. It led to the fact that many investors were diverting funds from the debt market to invest into new shares.

Best regards,

Analyst: Vladimir Donin