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By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
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China shares fall on bleak outlook
AP - Tuesday, December 23
SHANGHAI, China - Chinese stocks snapped a six-day winning streak on Monday as investors unloaded shares to cash in on recent gains amid mounting worries over earnings prospects.
The benchmark Shanghai Composite Index fell 1.5 percent, or 30.71 points, to 1,987.76. The Shenzhen Composite Index of China's second, smaller market edged down 0.2 percent to 621.80 points.
Investors were also disheartened by the lack of any fresh market-boosting policies, said Zhang Linchang, an analyst at Guotai Junan Securities, in Shanghai.
"Investors were disappointed because there was no really good news over the weekend," Zhang said.
The decline was lead by real estate companies, which had gained after the government recently issued new policies aimed at encouraging home sales.
China Vanke Ltd,. the country's biggest property developer, shed 4.9 percent to 7.34 yuan, while rival Poly Real Estate Group dropped 5.6 percent to 17.13 yuan.
A U.S. pledge to loan troubled automakers General Motors Corp. and Chrysler LLC $17.4 billion failed to ease worries about the deteriorating world economy. As the year draws to a close, prospects for a revival in corporate earnings look bleak, analysts said.
Added to that are concerns about the pending expiration of hundreds of billions of previously untradable shares, a factor expected to push prices lower in coming months as the supply of shares expands faster than demand.
Financial shares such as banks and insurers also fell Monday, with China Life Insurance giving up 4.2 percent to 20.32 yuan and Ping An Insurance dropping 5.3 percent to 28.73 yuan.
The Shanghai market's heaviest-weighted share, PetroChina, fell 1.4 percent to 10.92 yuan while oil refiner Sinopec, or China Petroleum & Chemical Corp., dropped 3.3 percent.
Both companies face reduced earnings following fuel price decreases announced late last week.
In currency dealings, the Chinese yuan weakened to 6.8469 to the U.S. dollar from Friday's close of 6.8442.
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