“China’s stocks fell for the first time in three days, led by property developers and power producers, on concern the central bank will boost borrowing costs and higher energy costs will hurt corporate earnings.
Poly Real Estate Group Co. led declines for developers after the 21st Century Business Herald quoted a central bank adviser as saying interest rates should be raised. Huaneng Power International Inc. (600011), the listed unit of China’s largest power group, slid 2.7 percent on concern higher coal prices will erode earnings. Shanxi Xinghuacun Fen Wine Factory Co. advanced to a five-month high after Shenyin & Wanguo Securities Co. boosted its earnings forecast for the Chinese liquor maker.
“Inflation expectations are still there and concerns about more tightening such as interest-rate increases will provide a drag on the broader market,” said Wu Kan, a fund manager at Dazhong Insurance Co., which oversees $285 million. “Consumer stocks are good hedges in this scenario.”…”
If you enjoy the content at iBankCoin, please follow us on Twitter
