September 9, 2010 (Chinavestor) A broad sell-off hit Shanghai on Thursday after rumors reached the trading floor that more property curbs are on the way and a possible rate increase after the Central Statistic Bureau decided to release August economic indicators two days earlier than originally planned. The Shanghai Composite Index (SHA:000001) tumbled 38.9 points or 1.5 percent to 2,656.35.
Trading was different in Hong Kong where investors eyed the U.S. for direction after a slump a day earlier. Given that the DJIA gained 46.3 points, investors in Hong Kong snapped up oversold plays from a day earlier. The Hang Seng Index (INDEXHANGSENG:.HSI) bounced back up 78.4 points or 0.4 percent after a 300 plus points drop a day earlier.
China Unicom (HKG:0762), the second largest Chinese mobile carrier, was one of the best performing HKEx-NYSE cross listed blue chip with a 3.4 percent jump after a 4.1 percent tumble on Wednesday. Sinopec Shanghai Petrochemical (HKG:0338), another NYSE cross-listed company with ticker symbol (NYSE:SHI), rose 3.5 percent in Hong Kong. But China Life Insurance (HKG:2628) (NYSE:LFC) fell 0.6 percent and Aluminum Corp. of China (HKG:2600), the third largest aluminum maker in the world, shed 0.5 percent.
Shanghai experienced a broad sell-off, stocks that fell outnumbered those that advanced twelve to one. Rumors that more property curbs are coming sent iconic stocks of the sector tumbling. Poly Real Estate (SHA:600048), the largest property developer in the Shanghai Composite Index (SHA:000001), fell 4.1 percent while China Vanke (SHE:200002), the largest Shenzhen listed real estate company, fell 1.32 percent. Construction materials, steel, copper and aluminum, fell as well. Baoshan Iron & Steel (SHA:600019), the largest Chinese steel maker, fell 3.3 percent while Wuhan Iron & Steel (SHA:600005) tumbled -4.0 percent.
If Hong Kong and the Hang Seng Index (INDEXHANGSENG:.HSI) can serve as a proxy for HKEx-NYSE cross listed companies, outlook is bright for China Unicom (NYSE:CHU) and Sinopec Shanghai Petrochemical (NYSE:SHI), but Aluminum Corp. of China (NYSE:ACH) and China Life Insurance (NYSE:LFC) is in trouble ahead of the bell on Thursday.