Equities fall on European debt crisis, inflation worries(1)
Tsingtao Brewery Co added 1.2 percent to 37.19 yuan ($5.75) on Monday, the highest close since Nov 10 as investors sought companies whose profit may withstand an economic slowdown. [Photo / China Daily]
SHANGHAI - Stocks on the Chinese mainland fell for the first time in four days on concern the nation's inflation rate will jump this month and the European debt crisis will curb demand for commodities and slow economic growth.
PetroChina Co dropped to the lowest in almost a month as Brent crude prices declined. Jiangxi Copper Co led a retreat for raw material companies. Beijing Tongrentang Co, a retailer of Chinese medicine, climbed 6.9 percent and Tsingtao Brewery Co surged to an eight-month high as investors sought companies whose profit may withstand an economic slowdown.
"I am more willing to invest in defensive stocks since the outlook for inflation and economic growth is still unclear," said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co, which oversees $285 million.
The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, slipped 3.48 points to 2816.69 at its close.
Of the 947 stocks in the measure, 448 stocks fell, 438 rose and 61 were unchanged. The CSI 300 Index lost 0.2 percent to 3122.60.
The Shanghai gauge had climbed for a fourth week after government reports showed China's economy grew at a faster-than-expected 9.5 percent in the second quarter and industrial production expanded more than estimated in June. The measure has added 0.3 percent this year, erasing a loss of as much as 6.7 percent, on expectations the central bank will halt monetary tightening after raising interest rates five times and the reserve-requirement ratio 12 times since the start of 2010.
