May 9 (Bloomberg) -- China’s (SHCOMP) stocks fell, dragging the benchmark index down by the most in six weeks, as political tension in Greece heightened concern Europe’s debt crisis may further slow Chinese export growth.
China Cosco Holdings Co. and Cosco Shipping Co. dropped more than 4 percent before a report tomorrow that will show Chinese export growth decelerated. SAIC Motor Corp. slid 2.9 percent after the Xinhua News Agency said China will ban executives at state-owned companies from excessive spending on items such as cars. Sany Heavy Industry Co. paced declines for construction machinery stocks after Nomura Securities Co. said sales of excavators last month were “disappointing.”
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, slumped 40.3 points, or 1.7 percent, to 2,408.59 at the close, the biggest drop since March 28. The CSI 300 Index (SHSZ300) declined 1.9 percent to 2,657.51. The Bloomberg China- US 55 Index (CH55BN), the measure of the most-traded U.S.-listed Chinese companies, lost 1.9 percent in New York.
“If the Greece and euro woes continue, it will start to drag on the market as investors will be concerned about the effect on the economy,” said Larry Wan, Beijing-based head of investment at Union Life Asset Management Co., which manages the equivalent of $2.2 billion.
Even with today’s drop, the Shanghai index has climbed 9.5 percent this year on expectations the government will relax monetary policies and take more measures to bolster equities. The China Securities Regulatory Commission will accelerate the pace of approving qualified foreign institutional investors, Shanghai Securities News reported today, citing Wang Lin, head of the fund supervision department at the CSRC.