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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 end lower after surge; property gains
AP - Saturday, November 22
SHANGHAI, China - Chinese stocks ended lower Friday after a volatile session punctuated by speculation of a weekend interest rate cut and suspected government buying of shares.
The benchmark Shanghai Composite Index fell 0.7 percent or 14.37 points to 1,969.39, for a 0.9 percent loss for the week. The smaller Shezhen Composite Index lost 0.8 percent to 552.46.
Shares opened lower, dipping by 4.5 percent by the midday break after another rough day on Wall Street, where the Dow Jones industrial average shed 444.83 points to 7,552.45.
But share prices surged early in the afternoon on what analysts said they believed was government-led buying.
"It's quite obvious some mysterious buyers are taking action to stabilize the capital market," said Xu Zhiyuan, an analyst for Capital Edge Investment & Management.
"Given all the gloom on overseas markets, China looks like the only lifeline, but that's just because the government puts a lot of effort into controlling things," Xu said.
Property developers rose Friday on speculation the government might be planning more moves to stimulate the economy, including a possible interest rate cut over the weekend.
The government has already announced a $586 billion stimulus package, and positive sentiment stemming from that helped underpin the Chinese market while other Asian bourses tanked in recent sessions.
Poly Real Estate jumped 6.5 percent to 17.97 yuan while China Vanke added 4.4 percent to 6.92 yuan.
Airlines fell as oil prices rebounded above $50 in Asian trading.
China Eastern Airlines slipped 6.6 percent to 4.39 yuan, and China Southern Airlines shed 4.7 percent to 3.66 yuan.
In currency dealings, the Chinese yuan strengthened to 6.8325 to the U.S. dollar in late afternoon trading, up from Thursday's close of 6.8357.
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