SHANGHAI stocks dipped yesterday for the first time in five trading days, led by property developers and banks after Premier Wen Jiabao said the central government won't loosen its monetary policies until home prices decline.

The Shanghai Composite Index shed 0.7 percent, the biggest loss since October 21, to close at 2,509.8 points.

Wen said during a visit to Russia that China would not ease its property curbs until home prices fall. He said the fall in home prices "will help the property industry to develop healthily and orderly."

Gemdale Corp fell 3.8 percent to 4.83 yuan (76 US cents). Shanghai Shimao Co fell 3 percent to 12.17 yuan.

The declines among real estate developers affected lenders. The Industrial and Commercial Bank of China, the country's largest lender, lost 0.7 percent to 4.31 yuan.

Cement makers also fell after Wen's comment. A report by Shenyin and Wanguo Securities yesterday said cement firms may face pressure on their earning prospects next year.

Anhui Conch Cement Co, the largest producer of the building material, dropped 2.4 percent to 19.41 yuan. Huaxin Cement Co declined 3.7 percent to 19.15 yuan.

Gui Haoming, chief securities strategist at Shanghai-based Shenyin and Wanguo, said China's inflation data for October, which is due out tomorrow, may give the market a boost if the Consumer Price Index hovers around 5.8 percent.

Source:shanghaidaily