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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 stocks down as rate cut rumors fizzle
AP - Tuesday, November 25
SHANGHAI, China - Chinese shares fell for a third straight session Monday after a hoped-for interest rate cut failed to materialize and euphoria over the government's multibillion-dollar stimulus package all but faded.
The benchmark Shanghai Composite Index declined 3.7 percent, or 72.33 points, to close at 1897.06. The Shenzhen Composite Index for China's smaller second market fell 3.6 percent to 532.82.
Investors shrugged off a weekend report on state television that local Chinese governments have proposed a total of 10 trillion yuan ($1.4 trillion) in investment projects since the Nov. 9 release of the $586 billion stimulus plan.
Stock prices have already factored in the possible benefits of the stimulus package, said Guo Yong, an analyst for Guangfa Securities. "The speculation is over," he said.
Disappointment that the central bank didn't cut interest rates on the weekend also dampened sentiment, said Zhang Xiuqi, analyst for Guotai Junan Securities. The market rose Friday on speculation of an interest rate cut.
Property giants China Vanke Ltd., the country's biggest developer, dived 7.2 percent to 6.42 yuan, and rival Poly Real Estate Group was down 6.7 percent to 16.76 yuan.
Construction stocks gained strongly in recent sessions on expectations they would benefit from higher government spending.
China Railway Erju Ltd. plunged by the daily maximum of 10 percent to 8.29 yuan and Hebei Taihang Cement Ltd. fell 4.3 percent to 5.81 yuan.
Stocks of home appliance makers tumbled after news reports said the president of Gome Electrical Appliances Holdings, China's biggest appliance chain, was under investigation for share trading violations.
TCL Corp. fell dived 9.1 percent to 2.59 yuan, and Gree Electric Appliances Inc. dropped 3.6 percent to 17.5 yuan.
Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, lost 2.2 percent to 3.96 yuan. Bank of China Ltd. declined 3.3 percent to 3.23 yuan, and China Construction Bank, Ltd. sank 3.9 percent to 4.25 yuan.
Medical and pharmaceutical stocks were among the few gainers, bucking the trend after the government said Sunday it would spend another 4.8 billion yuan ($703 million) to improve rural medical services.
Beijing Wandong Medical Equipment Ltd. and Guangdong Pharmaceutical Ltd. both soared by the daily limit of 10 percent. Wandong ended at 4.95 yuan, while Guangdong Pharmaceutical rose to 5.63 yuan.
In currency markets, China's yuan strengthened to 6.8284 to the U.S. dollar in over-the-counter trading around 0800 GMT, up from Friday's close of 6.8302.
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