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China shares fall on dashed hope of margin trading

China shares fall on dashed hope of margin trading

Chinese shares opened 2010 with losses Monday after the rumored launch of margin trading failed to happen, led by financials and properties.
The benchmark Shanghai Composite Index fell 33.38 points, or 1 percent, to close at 3,243.76. The Shenzhen Composite Index for China's smaller second exchange slipped 0.2 percent to 1,198.76.
Rumors that the government would Monday introduce margin trading _ buying stocks with cash borrowed from a broker _ and stock index futures in February helped to fuel four straight days of gains last week. But the margin trading measure failed to materialize Monday.
"The dashed hopes aroused doubts about previous gains of heavyweights, so investors were as mute as fishes," said Zhang Gang, an analyst for Southwest Securities in Beijing.
Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, lost 1.7 percent to 5.35 yuan. China Construction Bank Ltd. fell 1.1 percent to 6.12 yuan, while Bank of China Ltd. declined by 0.9 percent to 4.29 yuan.
Property shares fell further following the government's announcement last month that it would take steps to rein in surging housing prices. Poly Real Estate Group gave up 2.3 percent to 21.89 yuan, while China Vanke Ltd., the country's biggest developer, shed 1.9 percent to 10.6 yuan.
Agriculture-related shares surged after heavy snowstorms hit northern China on hopes the weather might spur demand for farm supplies. Hefei Fengle Seed Co. advanced 6 percent to 15.65 yuan, while Gansu Dunhuang Seed Co. soared 5.7 percent to 19.18 yuan.
In currency markets, the yuan weakened to 6.8271 to the U.S. dollar, down from Thursday's close of 6.8268.


Updated : 2021-10-18 19:42 GMT+08:00