A-Shares Down 1.6%, 2010’s First Policy Lifts Ag Shares
The Shanghai Composite Index dropped 1.60% to close at 2,941.36, while the Shenzhen Composite Index declined 1.58% to close at 1,102.69 on February 1. Trading volume on the Shanghai and Shenzhen Stock Exchanges was RMB 103.8 billion and RMB 72.83 billion, respectively.
Agricultural shares received a boost on Monday following the release of China's first policy document in 2010 on January 31, which called for ensuring the sound development of domestic agriculture, Shanghai Securities Journal reported. Haikou Agriculture & Industry & Trade (000735.SZ) soared 10%, while Xinjiang Talimu Agriculture Development (600359.SH) and Hubei Wuchangyu (600275.SH) grew 8.7% and 4.98%, respectively. This is the seventh consecutive year that the document has focused on rural problems, Xinhua reports.
Shares of petrochemical companies were weighed on Monday by a decline in the international oil price to $72.89 per barrel last Friday, reported Guangzhou Daily. China Petroleum & Chemical Corporation (Sinopec) (600028.SH. 0386.HK, NYSE:SNP) and PetroChina (601857.SH, 0857.HK, NYSE:PTR) sank 2.45% and 1.91%, respectively.
Shares of Ping An Insurance (Group) (601318.SH, 2318.HK) and China Pacific Insurance (Group) (CPIC) (601601.SH, 2601.HK) grew 2.97% and 2.04%, respectively, following announcements that their estimated 2009 net profits grew by over 1500% and 400% year-on-year, respectively.
The China Banking Regulatory Commission released an announcement in January cautioning banks of credit risks related to overcapacity in the steel industry, West China Metropolis Daily reported January 27. Angang Steel (000898.SZ) and Wuhan Iron and Steel (600005.SH) declined 4.4% and 3.4%, respectively, on Monday, while Baoshan Iron & Steel (600019.SH) retreated 1.19%.
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