China Stocks: China Shipping, Construction Bank, Jiangxi Copper

Nov. 23 （Bloomberg） -- The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, dropped 74.66, or 2.6 percent, to 2,809.72 at 11:07 a.m. The CSI 300 Index fell 2.9 percent to 3,079.19.

Property developers: China’s property prices and volumes will drop and the real-estate sector will underperform the market, Credit Suisse Group AG said in a note.

China Vanke Co. （000002 CH）, the country’s largest developer by market value, fell 1.4 percent to 7.98 yuan. Poly Real Estate Group Co. （600048 CH） dropped 3.4 percent to 11.84 yuan.

Banks: The China Banking Regulatory Commission said it will increase loans to the agricultural industry with an emphasis on sectors that have a supply shortage. The regulator will also strictly crack down on the use of loan funds in speculation, hoarding and artificially inflating prices.

China Construction Bank Corp. （601939 CH）, the nation’s second-largest, fell 1.5 percent to 4.60 yuan. Agricultural Bank of China Ltd. （601288 CH） declined 1.5 percent to 2.61 yuan.

Agricultural companies: China’s northeastern Heilongjiang province, the country’s top supplier of corn, soybeans and japonica rice, said large buyers of grain and foreign-owned companies must report to the authorities every five days on the progress of their purchases in the province.

Cofco Tunhe Co. （600737 CH） slumped 6.8 percent to 13.88 yuan. Xinjiang Talimu Agriculture Development Co. （600359 CH） tumbled 6.9 percent to 15.32 yuan.

Metal producers: Accelerating food inflation in China may be the “worst enemy” of metal prices because it will encourage the government to increase interest rates, slowing industrial production growth, Citigroup Inc. said in a report.

Jiangxi Copper Co. （600362 CH）, the top producer of the metal, slid 6.6 percent to 33.72 yuan. Aluminum Corp. of China Ltd. （601600 CH）, the listed unit of China’s biggest maker of the lightweight metal, dropped 4.3 percent to 10.18 yuan.

China Shipping Development Co. （600026 CH）, a unit of China’s second-biggest sea-cargo group, lost 3.2 percent to 10.18 yuan. The company said it ordered the construction of four 180,000 deadweight ton bulk vessels for a total of $212.3 million.

Everbright Securities Co. （601788 CH）, a unit of the nation’s largest state-owned investment group, retreated 2.1 percent to 14.98 yuan. The brokerage said it’s in talks with its parent to buy a 51 percent stake in Everbright Securities （International） Co.

Suzhou Gold Mantis Construction Decoration Co. （002081 CH）, a decoration company, jumped 10 percent to 69.91 yuan. The company had its share-price estimate raised 21 percent to 85 yuan after winning a contract from Evergrande Real Estate Group Ltd, Pan Jianping and Yang Tao, analysts at Citic Securities Co., wrote in a note today.

--Irene Shen, Zhang Shidong. Editors: Reinie Booysen