Chinese stocks halt a fourth straight rise on Tuesday

Chinese mainland share prices halted an upward trend on Tuesday after a fourth straight rise, as almost 80% of stocks in the market experienced a drop.

The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange edged down 0.13%, or 6.81 points, to stand at 5,386.53 points yesterday, after touching a high of more than 5,400 points in the morning.

The Shenzhen Component Index on the smaller Shenzhen Stock Exchange closed at 18,268.13 points, down 108.83 points, or 0.59 % from the previous close.

Despite share prices drop, the combined turnover of the two bourses rose to RMB 282.69 billion (US$38.73 billion), up slightly from RMB 249.23 billion on Monday.

China's property regulator said yesterday that it will impose strict punishment on developers who intentionally reserve land for a higher price. Property-related stocks were greatly affected by the news.

Guangzhou Donghua Enterprises Company<600393>, a major land developer in the country, slipped 6.84% to RMB 13.62 on Tuesday, while Beijing Tianhong Baoye Real Estate Company<600376> dropped 6.64% to RMB 39.2.

Airlines also fell yesterday. Air China <601111> <753>, the world's biggest airline by market value, closed at RMB 28.26, down 2.18%, or RMB 0.63.

However, banks were among the gainers league, led by China Merchants Bank Co<600036><3968> after it reported yesterday its net profit in 2007 more than doubled from a year earlier. The stock of the bank jumped 3.17%, or RMB 1.24, to stand at RMB 40.31.

Industrial & Commercial Bank of China Ltd <601398> <1398>, the nation's biggest listed lender, also rose 1.51%, or RMB 0.12, to RMB 8.09.

Oil stocks made a good performance yesterday, boosted by the rising international crude oil price. China Petroleum & Chemical Corp<600028> <386>, also known as Sinopec, surged 2.63%, or RMB 0.62, to finish at RMB 24.22.

As a whole, the two bourses reported 300 gains against 1,270 losses.