February 7, 2012 (Chinavestor) Chinese mainland investors turned defensive after the Central Bank announced plans to make affordable housing a priority and pledged to clamp down on speculators. Falling property prices continue to pressure the Shanghai Composite Index (SHA:000001), as is evidenced by Tuesday's 1.7% decline. Not only did the index fell hard but the decline was universal among large caps. Each and every stock among the 50 largest components of the index fell for the day in Shanghai with Poly Real Estate (SHA:600048), the largest Shanghai listed developer, tumbling as much as 3.1%.
Investors were cautious in Hong Kong as well, sending the Hang Seng Index (INDEXHANGSENG:.HSI) 10.8 points or 0.1% lower for the day.