News / Asia

China Stocks Slide on Property Curbs

TEXT SIZE - +

China's main stock market plunged more than five percent Monday, on concerns about government steps to cool the country's property market and fears about the impact of European debt woes.

China's main market, the Shanghai Composite Index tumbled 5.07 percent Monday, hitting a 12-month low.

The slide was the index's biggest loss since last August.  Property and bank stocks led the fall.

Daphne Roth, the head of Asian equity research at ABN Amro Private Banking's office in Singapore, says the biggest fear among investors in China is more economic tightening measures from the government.

"The first quarter GDP was 11.9 percent and also property prices have been going up and transactions remain very high. So, apparently, whatever the government has been doing, some of the soft policy measures did not work out the way that they wanted them too," said Roth.

On Saturday, Chinese Premier Wen Jiabao was quoted by state media as saying the government will take decisive measures to contain increases in property prices in some cities.

In April, property prices in China rose nearly 13 percent, the biggest annual jump in nearly five years.

In response, Chinese authorities launched a series of tightening measures, including new curbs on loans for third home purchases and the raising of minimum down-payments for second homes.

Consumer inflation continues to grow steadily in China, reaching 2.8 percent in April, its highest point in 18 months.

Roth says the draconian measures investors fear could also include possible price caps on electricity, fuel and food.

"I think this is the fear of the market," she said.  "That's what they are fearing now, that there will be more measures until the government sees some slow down."

Analysts say concerns about the recent performance of the U.S. stock market and the situation in Europe were also having a negative impact on investors.

They say there are concerns harsh spending cuts mandated by a bailout plan in Europe may choke off a fragile recovery in the 16-country euro zone.

Such concerns were also having an impact on stock markets across Asia, Monday.

In Japan, the Nikkei average fell more than two percent to a 10-week closing low.  South Korean shares dropped three percent, extending a decline there.  Stocks on Hong Kong's Hang Seng index fell 2.5 percent, the port-city's lowest closing level since February.

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid