January 30, 2012 (Chinavestor) China stocks dropped in Asia the first day after the Chinese New Year holiday. The Shanghai Composite Index (SHA:000001) fell 34.1 points or 1.5% in a broad decline due to a lack of interest rate cuts during the New Year Holiday. The Hang Seng Index (INDEXHANGSENG:.HSI) tumbled 341.3 points or 1.7% in Hong Kong where investors took profits before a key Italian bond sale on Monday and a summit of European leaders later on the day.
All but three among the 50 largest components of the Shanghai Composite Index (SHA:000001) fell on Monday indicating the strength of the sell-off. Chinese investors were hoping for signs of additional monetary easing as China is embracing a slower European economy. Banks and real estate developers fell the hardest as the property sector is facing challenges unless policy makers help ease strains of the sector. Poly Real Estate (SHA:600048) fell 4.7%, the most among the 50 largest components of the Shanghai Composite Index (SHA:000001).