China’s stocks fell, dragging the benchmark index to its lowest level this month, as consumer companies and property developers sank after a private services index declined and concern mounted that home sales are slowing.
BYD Co. , the automaker partly owned by Warren Buffett’s Berkshire Hathaway Inc., tumbled 5.6 percent. China State Construction Engineering Corp. paced losses by property companies after the central bank said it will toughen monitoring of the real-estate industry. Tencent (700) Holdings Ltd. sank to its lowest close since December in Hong Kong following a rout in Internet stocks in the U.S.
“The economy is still on a downward trend and the market is cautious,” said Wei Wei, an analyst at West China Securities Co. in Shanghai.
The Shanghai Composite Index (SHCOMP) slid 0.9 percent to 2,010.08 at the close. A services index from HSBC Holdings Plc and Markit Economics dropped to 51.4 in April from 51.9 in the previous month. A gauge of property stocks fell for a sixth day as the China Securities Journal said some small and medium-sized property developers are facing liquidity problems.
The CSI 300 Index lost 0.9 percent to 2,137.32. The Hang Seng China Enterprises Index fell 0.9 percent to its lowest level since March 21.
The Bloomberg China-US 55 Index retreated 0.5 percent in New York yesterday, when Alibaba Group Holding Ltd. filed for what could become the largest U.S. initial public offering ever. Alibaba, founded by former English teacher Jack Ma, filed for its U.S. IPO after the close of trading in New York. The online marketplace might raise as much as $20 billion, topping a $19.65 billion offering by Visa Inc. in 2008, data compiled by Bloomberg show.
Source: Bloomberg
Source: Bloomberg
