Chinese shares fell for the fifth day in a row, the longest run of losses since August 2015, as a measure of developers tumbled on concern policy makers will boost efforts to curb speculators.
The Shanghai Composite Index dropped 1.1 per cent to 3,081.46 as of 1:25 p.m. local time. Shanghai New Huangpu Real Estate Co. paced declines on a property gauge, while China United Network Communications Ltd. dragged utilities lower. The ChiNext gauge of small-cap shares fell 1.7 per cent to head for the lowest level since September 2015, while the Hang Seng China Enterprises Index in Hong Kong dropped 1.5 per cent. The Hang Seng Index lost 1.1 per cent, the most in a month.
The declines come amid efforts to clamp down on property prices and prevent a bubble, with Shanghai Mayor Yang Xiong saying Sunday that the city will strengthen regulation this year. China’s benchmark seven-day money-market rate climbed 13 basis points on Monday, the most in two weeks, amid increased demand for cash before the Lunar New Year holidays starting on Jan. 27.
“China’s policy bias to tighten the property market will continue,” said Ben Kwong, executive director at KGI Asia Ltd. in Hong Kong. “Investors will seek excuses to take profit on news that some local governments introduced new measures to prevent asset bubbles.”
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