Concerns over tighter moves hardly hit shares

REPORTS of the central government's plan to implement tighter monetary policies to curb possible overheating in the economy and contain rising inflation hardly dented Shanghai stocks yesterday.

The Shanghai Composite Index, which groups yuan-denominated A shares and hard-currency B shares, lost just 0.15 percent, or 7.58 points, to close at 5,035.07.

Turnover shrank to 64.6 billion yuan (US$8.7 billion) from 79.7 billion yuan the day before. Gainers outnumbered losers 452 to 313.

"The smaller trading value suggested investors were reluctant to sell shares amid uncertainty over policies," said Wang Antian, an analyst from Guohai Securities Co Ltd.

China plans to shift to a "tight" monetary policy next year to prevent the economy from overheating and curb inflation, according to the Central Economic Work Conference.

Yu Wei, an analyst with Shanghai Shiji Investment Consulting Co Ltd, however predicted the bull market to continue as capital is sufficient and there is confidence.

"A minor correction will help the benchmark to grow more steadily in the long term," Yu said.

Blue chips led by steel mills fell while airlines and brokers rose.

Baoshan Iron & Steel Co, China's biggest steel maker, lost 0.36 percent to 16.50 yuan while PetroChina Co, the nation's biggest oil company, slipped 1.02 percent, or 0.32 yuan, to 31.12 yuan.

Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender, lost 0.60 percent to 8.34 yuan. Poly Real Estate Group Co, China's second-largest developer by market value, shed 2.68 percent to 71.44 yuan.

China Petroleum & Chemical Corp, also known as Sinopec, Asia's biggest oil refiner, added 0.23 percent, or 0.05 yuan, to 22.27 yuan.