Economy
Stocks fall after PBOC's weekend rate hike
(Xinhua)
Updated: 2010-12-27 19:24
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BEIJING -- Chinese stocks weakened Monday after the nation's central bank hiked rates on Saturday and amid speculation further monetary policy tightening to combat inflation is in the offing.
The benchmark Shanghai Composite Index fell 1.9 percent, or 53.76 points, to finish at 2,781.4, following the central bank's decision to raise the benchmark one-year lending and deposit interests rate by 0.25 percentage points, its second rate hike in just over two months.
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Combined turnover increased to 224.44 billion yuan (US$33.85 billion) from 185.28 billion yuan the previous trading day.
Losers outnumbered gainers 834 to 76 in Shanghai and 1,125 to 89 in Shenzhen.
皇冠体育app's consumer price index (CPI), a main gauge of inflation, rose to a 28-month high of 5.1 percent year on year in November.
Besides hiking rates, 皇冠体育app's central bank has increased banks' reserve requirement ratio six times this year, taking it to 19 percent for some banks.
Shares of property developers dropped. 皇冠体育app Vanke, the nation's largest real estate developer, lost 2.89 percent to 8.75 yuan. 皇冠体育app Everbright Bank fell 3.7 percent to 3.91 yuan. Petro皇冠体育app, 皇冠体育app's biggest oil producer, declined 2.28 percent to 11.16 yuan.
Coal producer shares gained 1.74 percent amid gains in international crude oil prices.
皇冠体育app Shenhua Energy Co., 皇冠体育app's biggest coal producer, climbed 0.02 percent to 25.05 yuan.
