Trade tension takes its toll on market

SHANGHAI - Mainland stocks fell the most in two weeks, led by developers and shippers, on concern rising trade tensions will hurt the outlook for exports and the government may further tighten policy to curb asset bubbles.

Cosco Shipping Co dropped 1.7 percent after Vice-Minister of Commerce Zhong Shan said pressuring China to revalue its currency won't succeed. Developer China Vanke Co declined 1.7 percent on prospects the government will add measures to limit property speculation. Baoshan Iron & Steel Co dropped for a fourth day on sliding metal prices.

The Shanghai Composite Index lost 37.63, or 1.2 percent, to close at 3019.18 on Thursday.

Bloomberg News

(China Daily 03/26/2010 page17)