BEIJING: CHINA’S STOCKS fell amid concern recent gains were excessive relative to the outlook for economic growth. Phone companies, the best performers over the past month, led declines.
China United Network Communications Ltd. slid 4.1 percent after jumping 60 percent since last month. Everyday Network Co. and Nanfeng Ventilator Co. plunged more than 5 percent, dragging down the ChiNext index of small companies. Energy companies provided some market support, with China Oilfield Services Ltd. and Offshore Oil Engineering Co. jumping 10 percent on industry reform speculation, according to Zheshang Securities Co.
The Shanghai Composite Index dropped 0.7 percent to 4,449.43 at 10:09 a.m. local time. The CSI 300 Index fell 1 percent. Hong Kong’s Hang Seng China Enterprises Index advanced 0.1 percent, while the Hang Seng Index added 0.3 percent. The Bloomberg China-US Equity Index added 1.3 percent on Monday.
Stocks also fell amid concern more market-cooling measures may be in the offing. Huatai Securities Co. and Tebon Securities Co. raised requirements for margin trading and short selling to control risks, the Shanghai Securities News reported, without citing anyone. China may increase the stamp tax on stock trading to boost fiscal revenue, the Securities Times reported, citing a research note from Changjiang Securities Co.
The Shanghai Composite has advanced 39 percent this year, extending last year’s 53 percent rally, on expectations the government will extend interest-rate cuts and speed up mergers of state-owned enterprises.
