Nikkei: 8,463.16 (–78.77) Hang Seng: 18,960.90 (–387.54) Shanghai Comp: 2,466.96 (–62.80)SHANGHAI SHARES slumped by the biggest amount for almost two months yesterday, as property developers led mainland stocks lower on fears over earnings for the sector.
The Shanghai Composite index sank 2.5 per cent.
Expectations of Chinese house price falls well into 2012 prompted BNP Paribas to cut its earnings per share forecasts for developers by up to 26 per cent for next year.
China Vanke, the country’s biggest developer, lost 3.4 per cent to Rmb7.29 after reports that it might be forced to cut prices for its Shanghai properties.
Poly Real Estate tumbled 4.8 per cent to Rmb9.40 as loan repayment concerns surrounding China’s property companies unnerved investors.
China Life, the nation’s biggest insurer, retreated 2.9 per cent to Rmb17.68.
Hong Kong’s Hang Seng lost 2 per cent with HSBC dropping 2.1 per cent to HK$60.75 during a weak session for financials.
There was more cheer for scandal-blighted stock Olympus as the Japanese camera maker surged 16 per cent to ¥740. – (Copyright The Financial Times Limited 2011)
