Shanghai index slashes 2.28% over weekend tightening worry
Updated: 2007-08-17 17:27
Shares of real estate companies closed mixed, with Shanghai Industrial Development clinching the limit up, while China Vanke, a leading land developer, suffered a 3.83 percent loss.
There are reports today that the People's Bank of China will issue another 101 billion yuan worth of central bank notes to particular financial institutions, one day after the issuance of the previous batch of notes. Although the move does not target the stock market directly, it suggests the financial regulator's resolution to draw in excess liquidity from the market.
In addition, the bullish stock market defied a series of monetary tightening measures beginning last month and ran all the way toward the 5,000-point milestone in the past days. Many investors worried the regulators may adopt more tightening measures to cool the nation's economy as well as the stock market, especially at the psychologically sensitive weekend. The recent sell-off in the neighboring market investors also added to cautions.
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