China Travel Deals, China Tourist, China Vacation, Chinese Travel

China Real Estate

SHANGHAI, August 28, 2009 - Hakka shares tumbled 2.45 percentage by midday Friday as recent equity fund-raising announcements from big companies raised concerns over a share supply glut, dealers said.

The Shanghai Composite Index, which covers both A and B shares, was down 72.12 points at 2,874.27.

Analysts said recent big fund-raising announcements by China Merchants Bank, Shanghai Pudong Development Bank and developer China Vanke will weigh on sentiment, in particular given the nascent nature of China s economic recovery.

"Banks and property developers are entirely under pressure to arise cash across the stock market," Everbright Securities analyst Huang Xuejun told Dow Jones Newswires.

"Banks want to lend, except many exhausted capital in the prototypal half, whereas real property developers require cash to buy land, distressed properties," Huang added.

The Shanghai A-share index shed 75.78 points, or 2.45 percent, to 3,016.34, whereas the Shenzhen A-share index dropped 24.59 points, or 2.33 percent, to 1,031.43.