| Stocks drop as lenders, steel makers decline |
DOMESTIC stocks fell for the first time in four days, led by plunges among banks and major steel makers.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, dropped 0.51 percent, or 27.01 points, to close at 5,294.05.
The Shenzhen Composite Index, which covers the smaller mainland stock market, declined 1.18 percent, or 17.51 points, to 1,470.39.
Among the stocks on the Shanghai Composite index, 275 rose, 503 fell and 64 were unchanged.
The banking sector declined today over news the Construction Bank of China may sell A-shares valued at US$7.5 billion as early as this month.
Minsheng Banking, the nation's first non-state-owned bank, lost 2.12 percent to 16.61 yuan (US$2.20). China Merchants Bank Co, the nation's seventh-largest lender, lost 1.88 percent, or 0.72 yuan to 37.52 yuan.
Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, also declined 1.59 percent, to 6.80 yuan.
But Bank of China increased 0.16 percent to 6.12 yuan.
The listing committee of China's securities regulator will meet on September 7 to review Construction Bank's plan to sell as many as nine billion shares, according to documents posted on the watchdog's Website late yesterday.
Major steel makers also suffered loses.
Baoshan Iron & Steel Co Ltd, the biggest steel maker in China, slid 2.72 percent to 18.97 yuan. Shougang Group, one of the four biggest steel producers in China, also plunged 4.57 percent to 9.18 yuan.
China Eastern Airlines, the third biggest carrier in China, continued to rise by the daily limit of 10 percent to close at 11.62 yuan per share.
Shares of the carrier jumped 10 percent to close at 10.56 yuan yesterday after it announced a deal to sell a combined 24 percent stake to Singapore Airlines and Temasek Holdings, Singapore's government investment arm.
Haitong Securities Co gained 1.20 percent, or 0.61 yuan, to 51.49 yuan after saying it plans to raise as much as 26 billion yuan in a share sale this year.
China Unicom Ltd, the country's smaller mobile-phone operator, rose 7.54 percent to 8.27 yuan. Caijing Magazine yesterday reported that a reconstruction project between China Unicom and China Mobile, the nation's biggest mobile-phone operator, was already on the agenda for the country's top state-owned assets supervisor and may be completed by next May.
China Vanke Co, the nation's largest listed developer, increased 1.28 percent to 34.13 yuan.
Shimao Property Holdings, a Shanghai-based real developer, rose by 10 percent limit, or 3.13 yuan, to close at 34.44 yuan.
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