Feb. 21 (Bloomberg) -- China's stocks fell for a second day after crude oil rose to a record and Shanghai Pudong Development Bank Co. announced plans to sell new shares.
China Petroleum & Chemical Corp., known as Sinopec, dropped by the most in almost four weeks on concern record oil prices will erode earnings at the refiner.
Shanghai Pudong Development Bank Co. completed its biggest two-day decline since November 1999 on concern its plan to sell new shares will drain capital from existing equities.
``Surging oil prices and coming fund-raising plans have undermined market confidence and encouraged investors to sell,'' said Wang Zheng, who manages the equivalent of $400 million at the asset management unit of Everbright Securities Co. in Shanghai.
The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 32.69, or 0.7 percent, to 4,876.03 at the close. The measure dropped 2.2 percent yesterday.
China Petroleum, Asia's biggest oil refiner, decreased 0.83 yuan, or 4.4 percent, to 17.90, its steepest decline since Jan. 28. Sinopec Shanghai Petrochemical Co., China's largest maker of ethylene, fell 0.03 yuan, or 0.2 percent, to 13.10. Sinopec Yizheng Chemical Fibre Co., China's largest chemical fiber maker, lost 0.05 yuan, or 0.5 percent, to 9.16.
Crude oil for March delivery closed at a record for the second consecutive day yesterday in New York, rising 0.7 percent to $100.74 a barrel on speculation demand for fuels remains high. That's 66 percent higher than a year ago.
Airlines, Pudong Bank
Chinese oil refiners cannot increase prices of their products to pass the higher cost of crude onto customers, unless they have government approval.
Airlines also declined as rising oil prices increase fuel costs. Air China Ltd., the world's biggest airline by market value, lost 0.82 yuan, or 3.8 percent, to 21.01. China Southern Airlines Co., the nation's biggest carrier by fleet size, declined 0.32 yuan, or 1.4 percent, to 22.29. China Eastern Airlines Corp., the nation's third-largest carrier by fleet size, fell 0.58 yuan, or 3.6 percent, to 15.54.
Pudong Bank, the Chinese partner of Citigroup Inc., tumbled 2.75 yuan, or 6 percent, to 43.23, the steepest two-day drop since Nov. 10, 1999. The bank hasn't decided on the details of its new share sale, the proceeds of which will be used to boost core capital, it said in a statement last night.
Its stock plunged by the 10 percent daily limit yesterday on speculation the company will sell 1 billion new shares worth about 46 billion yuan ($6.43 billion).
Other banks fell on concern they have similar fund-raising plans. Industrial & Commercial Bank of China Ltd., the nation's biggest listed lender, decreased 0.13 yuan, or 1.9 percent, to 6.62. China Merchants Bank Co., the nation's biggest dual- currency credit-card issuer, lost 0.74 yuan, or 2.3 percent, to 32.20. Shenzhen Development Bank Co., controlled by buyout firm TPG Inc., retreated 0.80 yuan, or 2.3 percent, to 33.99.
The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, fell 0.9 percent to 4,527.18. The Shenzhen Composite Index added 0.4 percent to 1,423.21.
China Petroleum & Chemical Corp., known as Sinopec, dropped by the most in almost four weeks on concern record oil prices will erode earnings at the refiner.
Shanghai Pudong Development Bank Co. completed its biggest two-day decline since November 1999 on concern its plan to sell new shares will drain capital from existing equities.
``Surging oil prices and coming fund-raising plans have undermined market confidence and encouraged investors to sell,'' said Wang Zheng, who manages the equivalent of $400 million at the asset management unit of Everbright Securities Co. in Shanghai.
The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 32.69, or 0.7 percent, to 4,876.03 at the close. The measure dropped 2.2 percent yesterday.
China Petroleum, Asia's biggest oil refiner, decreased 0.83 yuan, or 4.4 percent, to 17.90, its steepest decline since Jan. 28. Sinopec Shanghai Petrochemical Co., China's largest maker of ethylene, fell 0.03 yuan, or 0.2 percent, to 13.10. Sinopec Yizheng Chemical Fibre Co., China's largest chemical fiber maker, lost 0.05 yuan, or 0.5 percent, to 9.16.
Crude oil for March delivery closed at a record for the second consecutive day yesterday in New York, rising 0.7 percent to $100.74 a barrel on speculation demand for fuels remains high. That's 66 percent higher than a year ago.
Airlines, Pudong Bank
Chinese oil refiners cannot increase prices of their products to pass the higher cost of crude onto customers, unless they have government approval.
Airlines also declined as rising oil prices increase fuel costs. Air China Ltd., the world's biggest airline by market value, lost 0.82 yuan, or 3.8 percent, to 21.01. China Southern Airlines Co., the nation's biggest carrier by fleet size, declined 0.32 yuan, or 1.4 percent, to 22.29. China Eastern Airlines Corp., the nation's third-largest carrier by fleet size, fell 0.58 yuan, or 3.6 percent, to 15.54.
Pudong Bank, the Chinese partner of Citigroup Inc., tumbled 2.75 yuan, or 6 percent, to 43.23, the steepest two-day drop since Nov. 10, 1999. The bank hasn't decided on the details of its new share sale, the proceeds of which will be used to boost core capital, it said in a statement last night.
Its stock plunged by the 10 percent daily limit yesterday on speculation the company will sell 1 billion new shares worth about 46 billion yuan ($6.43 billion).
Other banks fell on concern they have similar fund-raising plans. Industrial & Commercial Bank of China Ltd., the nation's biggest listed lender, decreased 0.13 yuan, or 1.9 percent, to 6.62. China Merchants Bank Co., the nation's biggest dual- currency credit-card issuer, lost 0.74 yuan, or 2.3 percent, to 32.20. Shenzhen Development Bank Co., controlled by buyout firm TPG Inc., retreated 0.80 yuan, or 2.3 percent, to 33.99.
The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, fell 0.9 percent to 4,527.18. The Shenzhen Composite Index added 0.4 percent to 1,423.21.
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