China’s Stocks Drop for Fifth Day on Growth, Europe Debt Concern


26/06/2012 07:34 AST  Bloomberg

China’s stocks fell for a fifth day, the longest losing streak in six months, after HSBC Holdings Plc cut its China economic growth forecast and concern grew European leaders will fail to tame the region’s debt crisis.

Yanzhou Coal Mining Co. (600188) plunged 6.5 percent after benchmark power-station coal prices at Qinhuangdao declined the most in more than three years. SAIC Motor Corp. (600104), China’s largest carmaker, dropped to a three-month low after an official with the top economic planner said the government has no imminent plans to introduce more stimulus policies to revive vehicle demand. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. slid 3.4 percent on speculation this year’s gain was excessive.

“It’s about sentiment and investors at home and abroad are disappointed that policy makers haven’t made much of an effort to stem a slowdown,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai. “The market wants to see more stimulus plans and liquidity.”

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