ASIA MARKETS: Asian Stocks Slide After China Takes Steps To Cool Real Estate Market
By Ese Erheriene
Apple suppliers fall in Taiwan; New Zealand stocks rise after election
Asia-Pacific markets ended mostly lower on Monday after the Chinese government's action on real estate and cooling sentiment about Apple
Investors in the region largely shrugging of election results in Germany and New Zealand.
Hong Kong's Hang Seng lost 1.4%, with property developers bearing the brunt of the losses. Those stock in both Hong Kong and China -- some up 300% or 400% this year as strong sales growth overcame concerns the shares were running ahead of themselves -- were hit by a widening net of measures from Beijing to control home prices.
The spread of controls from first-tier to second-tier cities may not in and of itself matter to investors who have been buying the sector despite the fundamentals, said China Merchants Bank strategist Daniel So. But it "may be an excuse in the short-term for a stock-price correction."
Shares of China Evergrande Group (3333.HK) ended 8.8% lower, while Sun Hung Kai Properties Ltd. (0016.HK) fell 3.2%.
Shanghai Composite Index closed 0.3% lower.