"China’s stocks fell for a second day on concern the government may join other Asian nations in taking measures to slow inflation and that valuations for the biggest commodity producers were excessive after last month’s rally.
Jiangxi Copper Co. and Datong Coal Industry Co. lost at least 5 percent on speculation U.S. economic measures may miss investors’ expectations. Industrial & Commercial Bank of China Ltd. climbed the most in three weeks, pacing gains for lenders, on easing concerns over local government loans.
“We haven’t seen the start of another growth cycle for China’s economy yet and inflation is looming,” said Zheng Tuo, president of Shanghai Good Hope Equity Investment Management Co. “The current scenario won’t support a further massive run-up for equities. Consumer stocks may be a good haven for investors as they will probably pass on rising costs.”" Read more. "China's Stocks Decline for a Second Day on Inflation Concerns, Valuation"
Bloomberg, November 3, 2010. Image by renjith krishnan / FreeDigitalPhotos.net.