Aug. 9 (Bloomberg) -- China’s stocks fluctuated as developers dropped on concern the government’s property curbs are starting to hurt earnings while cement makers gained on the prospect overcapacity in the industry will ease.
Gemdale Corp. lost 1.4 percent after property sales dropped in the first seven months of 2010. Anhui Conch Cement Co. advanced to the highest in four months after the government said it will shut 762 cement companies by the end of September.
“The government’s property curbs have taken effect now and we’ll probably see more of profit decline among developers,” said Zhang Kun, a strategist at Guotai Junan Securities Co. in Shanghai. “Bigger companies will be the ultimate beneficiaries of the plan to remove overcapacity because of advanced technology and the better quality of their products.”
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 2.14, or 0.1 percent, to 2,656.25 as of 9:57 a.m. local time. The gauge climbed 0.8 percent last week. The CSI 300 Index was little changed at 2,896.26.
The Shanghai index has rebounded 12 percent from this year’s low set on July 5 as investors speculated the government will ease property curbs and allow more lending to counter a slowdown in economic growth. The benchmark measure is still down 19 percent in 2010, the world’s third-worst performer.
