Eq­ui­ties slump on con­cerns about eco­nomic growth

China Daily (Canada) - - BUSINESS -

Do­mes­tic stocks fell on Thurs­day, send­ing the bench­mark in­dex to its big­gest drop in a week, on grow­ing con­cern govern­ment ef­forts to shore up eco­nomic growth will be in­suf­fi­cient. Fi­nan­cial and com­mod­ity com­pa­nies led the de­clines. Jiangxi Cop­per Co and Alu­minum Corp of China Ltd paced losses for metal com­pa­nies, slid­ing at least 2 per­cent. Da­tong Coal In­dus­try Co slumped 4.2 per­cent. China Vanke Co, the na­tion’s big­gest listed de­vel­oper, dropped to the low­est level in three weeks. SAICMo­tor Corp, the largest car­maker, gained 4 per­cent af­ter re­port­ing higher first-half prof­its. The Shang­hai Com­pos­ite In­dex re­treated 0.7 per­cent to 2,206.47 at the close. China is un­likely to in­tro­duce any “mean­ing­ful” stim­u­lus even af­terWed­nes­day’s dis­ap­point­ing credit data be­cause the govern­ment is con­tent with the slower pace of eco­nomic growth, ac­cord­ing to Credit Suisse Group AG. is the first ad­just­ment to the guide­lines since 2010. The bank­ing reg­u­la­tor will rate trust com­pa­nies on terms of risk, as­set and com­pli­ance man­age­ment, and clas­sify com­pa­nies at six dif­fer­ent lev­els. The re­sults of the rat­ing will af­fect CBRC’s reg­u­la­tory plan­ning for trust com­pa­nies, al­lo­ca­tion of reg­u­la­tory re­sources, and cor­re­spond­ing reg­u­la­tory mea­sures, the Shang­hai-based news­pa­per re­ported. A trust com­pany’s abil­ity to man­age its rep­u­ta­tion as part of as­set man­age­ment will be as­sessed along with other as­pects such as the man­age­ment of in­vestor and pub­lic re­la­tions, and brand build­ing. Fi­nan­cial in­dus­try in­sid­ers said the new guide­lines would po­lar­ize trust com­pa­nies.

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