China's Stocks Slide, Led by Developers, Banks on Rate Concern

China's stocks fell, led by Shanghai Pudong Development Bank Co. and China Vanke Co., on concern the government will introduce more tightening measures after home prices rose last month at the fastest pace since August 2005.

The CSI 300 Index, which tracks local-currency stocks traded on the Shanghai and Shenzhen exchanges, fell 78.92, or 1.6 percent, to 4,805.38 at 9:31 a.m. local time, headed for a 4.8 percent drop this week. The measure has declined in seven in the past nine weeks since reaching a record close on Oct. 16.

Shanghai Pudong Development Bank Co., the Chinese partner of Citigroup Inc., fell 0.44 yuan, or 0.9 percent, to 48.03. China Merchants Bank Co., the largest dual-currency credit card issuer, slid 0.41 yuan, or 1.1 percent, to 37.

China Vanke, the nation's largest publicly traded property developer, retreated 0.56, or 1.9 percent, to 28.84. Poly Real Estate Group Co., the second-biggest developer, slipped 1.19 yuan, or 2 percent, to 58.60.

Home prices in 70 major cities in China rose 10.5 percent in November from a year earlier, after gaining 9.5 percent in October, according to a transcript of remarks by Cao Changqing, director of pricing at the National Development and Reform Commission posted on the government Web site. That was the biggest increase since records began in August 2005.

The government has raised interest rates five times this year and ordered banks to set aside 14.5 percent of deposits as reserves from Dec. 25, the highest proportion in a decade, to prevent the economy from overheating.

China may impose a property tax as early as next year, the Shanghai Securities News reported Wednesday, citing Song Chunhua, chairman of the China Real Estate Association.