| China's stocks drop for first day in four |
SHANGHAI, Mar. 9 -- Shanghai's stocks fell for the first time in four days as some investors judged the gains excessive compared with earnings prospects. China Vanke Co paced the decline among stocks that had risen the most.
"It makes sense for the market to have a break after the recent rally," said Fan Dizhao, who helps manage the equivalent of US$1.8 billion at Guotai Asset Management Co in Shanghai, according to Bloomberg.
The Shanghai Composite Index, which tracks the bigger of domestic stock exchanges, lost 0.4 percent to 2915.95. The Shenzhen Composite Index, which covers the smaller one, dropped 0.5 percent to 759.41.
China Vanke, the nation's biggest property developer, lost 0.40 yuan (5 US cents), or 2.5 percent, to 15.42 yuan. The stock has more than tripled over the past year. China United Telecommunications Corp, which controls the nation's second-largest cell phone operator, fell 0.16 yuan, or 3 percent, to 5.19 yuan. The shares have gained 90 percent in the past year. Shanghai Automotive Co, the listed unit of China's largest automaker, retreated 0.58 yuan, or 4.3 percent, to 12.79 yuan, trimming its gain to 56 percent this year.
Lenders including Shanghai Pudong Development Bank Co gained after Bank of Communications Ltd reported 2006 profit rose.
Hong Kong-listed Bank of Communications Ltd, which is 20 percent owned by HSBC Holdings Plc, said profit jumped 33 percent from a year earlier to 12.27 billion yuan in 2006 as the fastest economic growth in more than a decade bolstered loan demand and reduced defaults, improving margins.
Pudong Bank, the Chinese partner of Citigroup Inc, rose 0.35 yuan, or 1.5 percent, to 24.50 yuan. China Merchants Bank Co, the nation's third-biggest publicly traded lender, advanced 0.07 yuan, or 0.4 percent, to 16.27 yuan.
Separately, Merchants Bank said it received regulatory approval to open a new branch, taking its total number of outlets to 458. China Merchants will set up the branch in Taizhou, eastern Zhejiang province, the Shenzhen-based bank said in a statement.
Elsewhere, Yunnan Chihong Zinc & Germanium Co, a zinc producer in the southern province of Yunnan, gained 3.04 yuan, or 3.1 percent, to 102.20 yuan. The company said profit for 2006 jumped almost eightfold to 1.11 billion yuan from a year earlier on rising zinc prices.
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