China's Stocks Decline; Chalco, Yunnan Aluminium Fall on Profit

By Zhang Shidong

Oct. 7 (Bloomberg) -- China's stocks fell, led by raw- material and energy companies, extending a global rout after commodity prices slumped and Aluminum Corp. of China Ltd. forecast a profit decline.

Chalco, as the nation's biggest maker of the metal is known, retreated 3.4 percent. Citic Securities Co., the brokerage unit of China's biggest investment company, tumbled by the 10 percent daily cap on speculation a 52 percent jump over the past week was excessive. China Vanke Co. and Poly Real Estate Group Co. led property companies higher amid predictions the central bank will trim borrowing costs to boost the economy.

The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 26.25, or 1.2 percent, to 2,102.45 at the close. It dropped 5.1 percent yesterday.

``There's lots of uncertainty over the global and domestic economy and weakening regional markets have prompted investors to sell first to avoid risks,'' said Fan Dizhao, an investment manager at Guotai Asset Management Co. in Shanghai, which manages the equivalent of $5.l billion. ``The days of the bull- run in commodities are gone.''

To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net