China B-shares close lower led by property stocks

China B-shares closed lower with property stocks leading the declines due to expectations of further policy tightening measures against the sector.

Wall Street's weaker close on Friday also weighed on the B-share markets, dealers said.

The Shanghai B-share Index closed down 6.03 points or 1.69 pct at 349.94 on turnover of 655.90 mln usd and the Shenzhen B-share Index fell 19.85 points or 2.89 pct to 667.55 on turnover of 397.83 mln hkd.

"Heavy losses in property stocks dragged the index down, as investors are expecting policy tightening to continue pressuring the sector," said a Shanghai-based analyst who asked not to be named. "The weak performance of overseas markets also affected overall sentiment."

The property sector was also hit by reports that Vanke and other large property developers have lowered their prices to encourage sales in Guangzhou and Shenzhen, amid government pressure to curb housing prices.

Investors are also worried that China may impose a tax on property owners based on the value of their real estate.

In Shanghai, Jiangsu Xincheng Real Estate Co Ltd (SHB 900950) lost 0.082 usd or 3.85 pct to 2.049.

Shanghai Lujiazui Finance & Trade Zone Development Co Ltd (SHB 900932; SHA 600663) fell 0.069 usd to 2.285.

In Shenzhen, China Merchants Property Development Co Ltd (SZA 000024; SZB 200024) fell 3.0 hkd or 9.98 pct to 27.05.

China Vanke Co Ltd (SZB 200002; SZA 000002) shed 1.90 hkd to 18.30.

The consumer sector outperformed, supported by government efforts to boost domestic consumption.

Shanghai Jinjiang International Travel Service Co Ltd (SHB 900929) rose 0.049 usd or 2.01 pct to 2.487.

Anhui Gujing Distillery Co Ltd (SZB 200596; SZA 000596) gained 0.12 hkd to 10.50.

The FTSE/Xinhua China B 35 Index was down 332.88 points at 11,293.09.

(1 usd=7.4 yuan)