China stocks descend, dragging down Asian markets
On Tuesday, Chinese stocks dipped, being on track for their five day streak of revenues, following concerns that China’s government might make an attempt to tame speculative activity in China’s top property markets.
The Shanghai Composite Index ended -1.6%, the smaller Shenzhen Composite Index lost 0.9%. By the way, shares sagged elsewhere in Asia too. For instance, Japanese Nikkei Stock Average closed with a 1.6% loss, Australian S&P/ASX 200 lacked 0.7%, South Korean Kospi decreased 0.9%.
The Shanghai benchmark somewhat compensated its morning lows, however, property stocks weighed with a descend of more than 3%.
Market participants were selling the sector, especially after China’s government warned of the risk of leverage in China’s housing market. Huang Qifan, Chongqing mayor told that his country could be headed for a financial downtime if local governments are allowed to keep stimulating home buying with certain measures, including reducing down payment requirements. He told this at the country’s legislative meetings in Beijing.
Meanwhile, the country’s largest property developers, Shares of Poly Real Estate Group Co. Ltd as well as Gree Real Estate Co. Ltd dipped 4%.