Wednesday, February 9, 2011

China shares opens down after rate rise, led by property

SHANGHAI: China's main stock index opened down 0.7 percent on Wednesday, Feb 9 after the central bank announced a rise in benchmark interest rates on Tuesday, the eve of the market's reopening after the week-long Lunar New Year holiday.

The Shanghai Composite Index opened at 2,778.7 points, but some analysts expect the index may end the day with a slight rise as global markets have generally strengthened during the past week.

The main property index dropped 1.3 percent with top listed property developer China Vanke falling 1.2 percent.

Industrial and Commercial Bank of China, the world's biggest bank by market capitalisation, was down 0.5 percent, while top Chinese insurer China Life opened flat.

The benchmark stock index rose back above the 125-day moving average on the last trading day before the holiday, with investors having largely already priced in worries about the potential impact of more tightening. ($1 = 6.6 yuan) - Reuters


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