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Shares dip as investment likely to slow

    Shanghai stocks fell yesterday after iron and steel companies as well as property developers declined after the Chinese Academy of Social Sciences said investment in the real estate sector is likely to slow next year.

    The Shanghai Composite Index edged down 0.27 percent to close at 3,287.61 points.

    Shares of iron and steel providers, telecommunication firms and property developers were among the biggest decliners yesterday.

    Xinjiang Ba Yi Iron & Steel Co Ltd slumped 6.58 percent to 13.48 yuan (US$2.05) and Lushang Property Co Ltd lost 3.95 percent to 3.95 yuan. Beijing Urban Construction Investment & Development Co Ltd fell 4.57 percent to 13.37 yuan.

    “Since the second quarter of this year, investment in the real estate sector has started to decline. We estimate that the investment in real estate is likely to slow next year,” Lou Feng, a researcher at the Chinese Academy of Social Sciences, said at a conference yesterday.

    Lou attributed the slowdown to the Chinese government’s tightening measures being implemented around the country, which has been effective in maintaining a stable property market.

    Sentiment dimmed as investors became concerned over tightened supervision. China said it would continue to battle illegal financial activities, and curb financial risks.