Money

China's stocks decline Tuesday

(Agencies)
Updated: 2010-03-02 17:42

China's stocks fell from a five-week high as a decline for copper producers overshadowed a rally for property stocks after JPMorgan Chase & Co and UBS AG turned positive on developers.

The Shanghai Composite Index slipped 14.73, or 0.5 percent, to 3,073.11. The measure yesterday rose 1.2 percent to the highest since Jan 25. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, declined 0.4 percent to 3,311.24.

The benchmark index added 2.1 percent in February on speculation slowing inflation may prompt the central bank to refrain from raising borrowing costs immediately. The move by the bank to order lenders to set more deposits as reserves twice this year may have already cooled growth in the world's third- largest economy. Data released yesterday showed China's manufacturing grew at a slower pace in February.

Jiangxi Copper Co, China's biggest producer of the metal, dropped 4.6 percent after mines reopened in Chile following the Feb 27 earthquake. China Shenhua Energy Co led coal producers lower as prices of the fuel dropped for a fourth week. China Vanke Co, the biggest developer, gained 1.8 percent after reported a higher profit. Sichuan Swellfun Co advanced by the daily limit on Diageo Plc's plans to buy out the liquor maker.

"The earthquake didn't cause a massive disruption of copper productions and supply in Chile," said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co, which manages about $285 million. "Valuations of property stocks are quite low. They'll be bargains should the government not unveil additional measures to clamp down the industry."