China’s
stocks fell, heading for the first monthly loss since June, as consumer staple
producers, drugmakers and banks declined. Property developers rallied.
Inner
Mongolia Yili Industrial Group Co. slumped by the daily 10 percent limit and
Guangzhou Baiyunshan Pharmaceutical Holdings Co. slid after the companies
posted earnings. (SHCOMP) China Minsheng Banking Corp. fell 2.9 percent after
net income trailed estimates. Poly Real Estate Group Co. led a gauge of
property stocks to its biggest gain in three weeks after President Xi Jinping
said China will accelerate building public housing.
The
Shanghai Composite Index retreated 0.7 percent to 2,146.32 at 9:55 a.m. local
time. The gauge has lost 1.3 percent in October. Earnings at the 252 companies
in the measure tracked by Bloomberg that reported results so far this quarter
have trailed analyst estimates by 6.1 percent.
“Earnings
were generally worse than expected, which has dampened sentiment,” said Zeng
Xianzhao, an analyst at Everbright Securities Co. in Chongqing.
The
CSI 300 Index lost 1 percent to 2,384.41, while the Hang Seng China Enterprises
Index (HSCEI) dropped 0.6 percent. The Bloomberg China-US Equity Index gained
0.5 percent in New York yesterday. The Shanghai index trades at 8.5 times
projected profits for the next 12 months, lower than the seven-year average of
15.4.
The
nation’s top four banks posted their biggest increase in soured loans since at
least 2010. Nonperforming loans at Industrial & Commercial Bank of China
Ltd. (1398), China Construction Bank Corp., Agricultural Bank of China Ltd. and
Bank of China Ltd. rose 3.5 percent in the three months to Sept. 30 from June
to a combined 329.4 billion yuan ($54 billion), according to data compiled by
Bloomberg News.
China’s
interest-rate swaps and benchmark money-market rate rose to four-month highs
yesterday even after the central bank injected funds for the first time in
almost two weeks Oct. 29.
(Source: Bloomberg)