Led by China Shares Lower Property Developers

Led by China Shares Lower Property Developers

China 's shares ended lower Monday, ending a five-day rising streak on the main index, due to a decrease in property companies on the weekend after Beijing lowered expectations of policy easing directly in this sector.
The benchmark Shanghai Composite Index, which tracks A and B shares, ended down 0.2% at 2468.25. The Shenzhen Composite Index rose 0.5% to 1040.93, driven by gains in media and publishing company.
Shanghai index rose 4.6% in October, the first increase in four months, but analysts say further gains may be limited in the cooling Chinese economy.
"China Promises to policy easing concerns over further monetary tightening, but can not remove the concerns on the market because the company's margins to deteriorate," said Li Lei, an analyst at Gold State Securities. "Thus, the profit-taking can not be avoided and the market trend will be very limited."
Chinese companies listed in 2304 reported a net profit growth average of 19% in the period from January to September, lower than the increase of 22% in the first half of this year, the Shanghai Securities News reported Monday, citing its own statistics.
But not all analysts pessimistic about the prospects. Amy Lin, an analyst at Care Capital Securities said the correction in the normal market because the profit of 7% in the last five sessions.
"Sharp correction in recent months have been fully appreciated in the hope of a slower economy," he said. "I think the worst for the local market on the back we promised that the government will improve policies will help the investor confidence back."
Property developers led the broader market decline due to profit taking and after the central government at the weekend urged local governments to remain vigilant in keeping real estate prices.
China Merchants Property fell 0.2% to CNY17.65 and Beijing Vantone Real Estate fell 1.6% to CNY4.27. Shares of real estate companies rose sharply on Friday after the minister's house shows that China's implementation of a home purchase limit will be removed immediately.
Banks also fell on concerns over slower earnings growth. Bank of China ended down 0.7% at CNY3.00, Citic Bank fell 1.3% to CNY4.45 and Bank of Communications fell 1.3% to CNY4.71.
However, media and publishing company bucked the trend that larger markets, extend their recent gains on expectations that the government will spend billions of yuan to support the cultural industry. Shanghai Xinhua Media rose 4.3% to CNY7.96, Huawen Media Investment rose 8.0% to CNY7.39 and the Northern United Publishing & Media Group ended up 3.3% at CNY9.97.