In today’s trading, China’s stocks fell after experiencing better trading earlier. The downward movement in the market sent the benchmark index down as the Shanghai Composite Index (SHCOMP) fell 0.2 percent to 2,097.53 at the close. So far there has been significant fall in the index as it fell 7.4 percent this year on concerns of economic slowdown.
Major losers in today’s trade was Bank of China which fell 1.9 percent to 2.61 yuan today; however, expected to fare better for the government’s decision to inject fifty billion dollars may need time to get effective. A similar trend was seen in Bank of Communications, part-owned by HSBC Holdings Plc, it sank 2.3 percent to 3.80 Yuan.
Real Estate Stocks Down
The major losers in the stock market were Poly Real Estate, the second-biggest developer. Its shares were down to great extent as they fell close to 1.6 percent to 8.03 yuan. A similar trend was seen in the Shanghai Composite’s property stock index, which again lost 13 percent this year and became the worst performer among the five industry groups.
Similarly, China’s biggest producer of the metal, Jiangxi Copper could not change the trend and fell 0.9 percent to 14.02 yuan. The company has been in loss for the whole year and extended the losses to 41 percent. Yanzhou Coal Mining Co. was no exception today as its shares fell 0.8 percent to 8.74 Yuan and so far has declined 52 percent this year.
In its efforts to bring market on the track, China plans to invest 100 billion yuan in fourth-generation mobile networks in 2014. Miao Wei, Minister of Industry and Information Technology gave a statement wherein he said that he will be coming up with China’s telecom investment estimate for next year.
The neighboring country, India too is facing a slow market today as the benchmark BSE index trading down 0.15 percent. A similar trend is being seen in the broader NSE index which is lower at 0.27 percent today and according to market observers it is giving up early gains on profit-taking with low volumes.
In today’s trading in Indian market, the benchmark 10-year bond yield trading was also down 3 basis points at 8.93 percent on bargain buying. A lot of things depend on the central bank’s monetary policy framework review for future clues of monetary policy decision which is being awaited by traders who are interested to buy governmental bonds.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org