Property stocks hit Hong Kong, Shanghai markets

Property stocks hit Hong Kong, Shanghai markets

Hong Kong, MarketWatch (4/3) - Mainland Chinese shares skidded sharply early Monday, also dragging on Hong Kong-listed stocks, as property developers took heavy losses after Beijing warned of more curbs on the sector to cool rising prices. The Shanghai Composite plunged 2.3% to 2,305.92 in early trading, pulling down the Hang Seng China Enterprises Index 1.4% to 11,186.80 in Hong Kong, while the benchmark Hang Seng Index fell 0.7% to 22,722.71. Shares of Gemdale Corp. and Poly Real Estate Group Co. dropped by the day's 10% limit in Shanghai, after the State Council introduced stricter rules to curb speculative activity ahead of the annual session of the National People's Congress, China's parliament. Shares of China Vanke Co. fell 4.9% in Shenzhen. The moves, seen as a signal Beijing won't tolerate unaffordable home prices, dragged down shares of Hong Kong-listed developers China Resources Land Ltd. and China Overseas Land & Investment Ltd. 5.5% and 3.9%, respectively. Construction-related stocks in the cement and metals sectors were also hit on mainland Chinese bourses as well as in Hong Kong. http://www.marketwatch.com/story/property-stocks-hit-hong-kong-shanghai-markets-2013-03-03?link=MW_Nav_MA