“China’s stocks fell the most in five weeks after valuations for the benchmark index climbed to the highest level in 17 months and on concern the government may introduce measures to curb property prices in March.
China Vanke Co. and Poly Real Estate Group Co. slumped more than 4 percent, sending a gauge of developers to its biggest loss in six months after China Business News said the government may impose real-estate curbs around the time of an annual legislative meeting. Anhui Conch Cement Co. slid the most since September 2011 after the government forecast slowing cement output growth. SAIC Motor Corp. dropped 4.5 percent, leading losses for consumer companies reliant on economic growth.
The Shanghai Composite Index fell 1.6 percent to 2,382.91 at the close, the biggest loss since Jan. 11 and the worst two- day start to the Lunar New Year since 2007. The CSI 300 Indexretreated 1.9 percent to 2,685.61. The Hang Seng China Enterprises Index slumped 1.4 percent.
“There’s been speculation that there will be more property tightening as home prices have not fallen,” Zhang Lei, an analyst with Minsheng Securities Co., said by phone from Beijing. “This talk is still making the rounds and there are expectations more measures will be announced. Stocks are also down after rallying a lot.”
The Shanghai index has risen 22 percent from a three-year low on Dec. 3 on signs economic growth is accelerating. The gauge traded at 13.4 times reported profit yesterday, the highest level since September 2011, data compiled by Bloomberg show. It’s now valued at 13.2 times.
