China A-shares close sharply lower on profit-taking, powers, steels hit

China A-shares close sharply lower on profit-taking, powers, steels hit - UPDATE

	Published : Fri, 12 Jan 2007 09:16 By : Agencies Print this Story

SHANGHAI (XFN-ASIA) - A-shares in Shanghai and Shenzhen closed sharply lower on profit-taking with power generators and steelmakers losing ground, dealers said.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 102.0 points, or 3.68 pct, at 2,668.11, after moving between 2,652.58 and 2,782.03.

The key index rose 1.01 pct for the week. Turnover fell to 73.43 bln yuan from 83.99 bln in the previous session.

'The market was under heavy selling pressure as investors started to lock in gains, after the key index lost its momentum in recent days,' said Zhang Yidong, an analyst at Industrial Securities.

Analysts said more consolidation is likely as the securities regulator is controlling market liquidity.

'There could be more corrections over the next week as the regulators seem a bit worried about current over-optimism among investors. The securities watchdog has restricted issues of new fund products and speeded up approvals of IPOs, which are aimed at controlling market liquidity,' said Zhu Haibin, an analyst at Everbright Securities.

The China Securities Regulatory Commission (CSRC) approved the A-share plan of the Industrial Bank Co earlier this week, while a senior bank executive at Bank of Communications (HK 3328) said that the lender will be listed in Shanghai by March at the earliest.

Inner Mongolia Mengdian Huaneng Thermal Power Corp Ltd (SHA 600863) tumbled 0.30 yuan or 7.61 pct to 3.64.

China Yangtze Power Co Ltd (SHA 600900) fell 0.61 yuan or 5.99 pct to 9.57. SP Power Development Co Ltd (SHA 600795) lost 0.52 or 7.04 pct to 6.87.

Anyang Iron & Steel Co Ltd (SHA 600569) slipped 0.25 yuan or 7.44 pct to 3.11.

Inner Mongolia Baotou Steel Union Co Ltd (SHA 600010) shed 0.26 yuan or 7.28 pct to 3.31. Handan Iron & Steel Co Ltd (SHA 600001) lost 0.35 or 6.93 pct to 4.70.

Baoshan Iron & Steel Co Ltd (SHA 600019) fell 0.46 yuan or 4.90 pct to 8.92 after it said it has no current plans to list overseas, contrary to reports.

TCL Corp (SZA 000100) plunged its 10 pct daily limit to 2.70 yuan. It said it expects a net loss in 2006.

China Vanke Co Ltd (SZA 000002; SZB 200002) lost 0.33 yuan or 2.01 pct to 16.10. It said it expects 2006 net profit to have risen 50-65 pct due to increased sales.

Shanghai Automotive Co Ltd (SHA 600104), a listed unit of China's largest car maker SAIC Motor Corp, fell 0.55 yuan or 5.97 pct to 8.67. It said it sold more than 1.34 mln vehicles in 2006, up 27 pct.

Financial stocks remained strong after a surge in Hong Yuan Securities Co Ltd (SZA 000562).

Hong Yuan Securities rose by its 10 pct daily limit to 14.72 yuan. It said net profit in 2006 is expected to come in at about 230 mln yuan, well above the 8.22 mln earned in 2005, due to its expanding brokerage business in an active securities market.

CITIC Securities Co Ltd (SHA 600030) rose 1.10 yuan or 3.38 pct to 33.69. Shaanxi International Trust & Investment Co Ltd (SZA 000563) gained 0.30 or 4.37 pct to 7.16.

China Life Insurance (SHA 601628; HK 2628) rose 1.21 yuan or 3.16 pct to 39.50.

The Shanghai A-share Index tumbled 108.95 points or 3.74 pct to 2,803.06 on turnover of 71.82 bln yuan and the Shenzhen A-share Index ended down 13.39 points or 2.12 pct at 619.65 on turnover of 37.31 bln yuan.

The FTSE/Xinhua China A 50 Index closed down 208.92 points at 9,594.81. The FTSE/Xinhua China A 200 Index shed 155.57 points to 6,481.33 and the FTSE/Xinhua China A 600 Index was down 147.0 points at 5,368.94.

(1 usd = 7.80 yuan)

lake.xu@xinhuafinance.com

China A-shares close sharply lower on profit-taking, powers, steels hit - UPDATE