Sunday, March 10, 2013

ecns [expanded by feedex.net]: Inflation concern weighs on Shanghai shares

ecns [expanded by feedex.net]

ecns

Inflation concern weighs on Shanghai shares
http://www.ecns.cn/business/2013/03-11/53466.shtml
Mar 11th 2013, 04:42

2013-03-11 13:42 Shanghai Daily     Web Editor: qindexing
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Shanghai stocks dropped this morning amid concerns that the central government may tighten its monetary policy as the country's inflation hit a 10-month high in February.


The key Shanghai Composite Index lost 0.24 percent to 2,313 points. Turnover was 43.1 billion yuan (US$6.8 billion) by midday.


China's consumer price index, a main gauge of inflation, rose 3.2 percent year-on-year in February, accelerating from a rate of 2 percent in January, the National Bureau of Statistics announced on Saturday.


The figure was the highest in 10 months due to a surge of food prices.


"China's economic recovery is beset with difficulties and the central government is estimated to take a more cautious stance on monetary policy after the February CPI exceeded the forecast," Huarong Securities said in a report today.


Wang Tao, UBS Securities chief economist, believed China may start to tighten money supply as early as April.


Lenders fell among financial stocks after the data released yesterday by the People's Bank of China showed domestic banks issued a total of 620 billion yuan in new loans last month, falling from a three-year high of 1.07 trillion yuan in January.


Shanghai Pudong Development Bank Co dropped 1.3 percent to 10.57 yuan. China Minsheng Banking Corp shed 1.3 percent to 10.42 yuan. Industrial Bank Co fell 2.5 percent to 19.22 yuan.





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