By Chua Kong Ho
Nov. 21 (Bloomberg) -- China stocks fell, sending the benchmark CSI 300 Index to a weekly loss, on concern a deepening global recession will stifle profits.
Jiangxi Copper Co., the nation's second-biggest producer of the metal used to make electrical wires and pipes, dropped 2.5 percent after the metal tumbled to a four-year low in Shanghai. Haitong Securities Co., the second-largest brokerage by value, plunged by the 10 percent limit after 1.29 billion shares in the company became tradable today.
The benchmark CSI 300 sank 11.69, or 0.6 percent, to 1,920.73 at the close, capping a 1.2 percent loss for the week. Nine of the 10 industry groups slid, and about two stocks fell for each that advanced.
``Investors are concerned about the global economy and bad corporate profit prospects,'' said Philippe Zhang, chief investment officer at AXA SPDB Investment Managers in Shanghai, which oversees about $150 million. ``Measures by China's government are helpful in preventing a hard landing for the economy, but lower growth and corporate profit is a sure thing.''
The CSI 300, which tracks local-currency shares in Shanghai and Shenzhen, surged 16 percent last week for the biggest gain since April. The government on Nov. 9 announced a 4 trillion yuan ($586 billion) spending plan to arrest an economic slowdown.
China's economy grew at the slowest pace in five years in the third quarter. The U.S., Japan and the euro zone, among China's largest trading partners, entered recessions this year.
Property Boost
Property stocks gained as the central bank and finance ministry said they will deposit 50 billion yuan ($7.3 billion) of the treasury's cash with commercial lenders to make more funds available for lending.
China Vanke Co., the nation's largest property developer, gained 4.4 percent to 6.92 yuan. Poly Real Estate Group Co., the No. 2 builder, advanced 6.5 percent to 17.97.
Jiangxi Copper retreated 2.5 percent to 11.11 yuan and Yunnan Copper Industry Co. tumbled 3.9 percent to 8.94 yuan, as the price of the metal retreated.
Copper for February delivery declined 5 percent to 26,640 yuan a metric ton on the Shanghai Futures Exchange, the lowest for a benchmark contract since October 2004.
Haitong Slumps
Haitong slumped 10 percent to 11.98 yuan. Seven institutional investors, including Youngor Group Co., Huaitai Asset Management Co. and Citic Group, can sell their holdings from today. The locked-up shares the investors bought in a private placement a year ago correspond to about 85 percent of the firm's 1.52 billion publicly traded shares.
The Shanghai Composite Index dropped 0.7 percent to 1,969.39, while the Shenzhen Composite Index declined 0.8 percent.
The following stocks also rose or fell in China. Stock symbols are in parentheses after company names:
Shipping companies: China Cosco Holdings Co. (601919 CH), the world's largest operator of iron-ore and coal ships, retreated 0.33 yuan, or 3.7 percent, to 8.66. China Shipping Development Co. (600026 CH), which transports oil and coal, lost 0.34 yuan, or 3.9 percent, to 8.44.
The Baltic Dry Index, a measure of shipping costs for commodities, fell for a second day because of weaker demand for coal and iron ore to make steel. The index declined 1.4 percent to 847 points and has fallen 93 percent from a record on May 20, according to data from the Baltic Exchange.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net
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