China’s stocks fell, led by financial and commodity shares, as impending new equity sales drove up money-market rates and concern grew an economic slowdown will deepen.
China Construction Bank Corp. dropped 2.9 percent after saying it plans to raise as much as 80 billion yuan ($12.9 billion) by selling preferred stock. China Vanke Co. and Poly Real Estate Co., the largest developers, slumped more than 4 percent after an economist for the central bank said a slowdown in real estate investment in 2015 will hurt economic growth. PetroChina Co. and Jiangxi Copper Co. slid at least 2 percent.
The Shanghai Composite Index fell 0.8 percent to 2,915.36 at the 11:30 a.m. break, paring gains over the past month to 18 percent. China is likely to see the economic expansion next year decelerate to 7.1 percent, said Ma Jun, chief economist at the People’s Bank of China. China’s largest new share sales of 2014 are scheduled for next week and subscriptions are likely to lock up as much as 3 trillion yuan ($485 billion), the most this year, according to Shenyin & Wanguo Securities Co.
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