5:00 PM Hong Kong, China – China region key stock indexes drop on inflation concerns. China’s U.S. Treasury holding increased 2.6% to a record $906.8 billion in November. Chingqing Rural Commercial Bank gains 4.6% on its first day of trading in Hong Kong.
China stocks dropped for the second day led by banks and metal producers after the governmental efforts to contain inflation by slowing lending stoked investor concern.
The Shanghai Composite Index lost 0.46% or 13.28 to close at 2,898.14. The CSI 300 Index dropped 0.52% or 16.98 to close at 3,230.67.
The Hang Seng Index in Hong Kong fell 1.23% or 282.31 to close at 22,691.04.
Chingqing Rural Commercial Bank Co, the first Chinese bank since Agricultural Bank of China Ltd to go public in Hong Kong, climbed on its debut after raising HK$11.5 billion in the city’s fifth-largest IPO this year.
The shares gained as much as 4.6% in early trading from the initial price of HK$5.25.
The Consumer Price Satisfaction Index in China fell to 13.8 in the latest quarter, the lowest since data was first released in the fourth quarter of 1999, the People’s Bank of China said on its Web site on Wednesday
The survey of 50,000 people in 50 cities across China found that 74% of households said the prices were too high, up 15.6% from the previous quarter.
SAIC Motor Corp, China’s largest auto group, said on Wednesday it has raised 10 billion yuan through a private placement for development of new-energy cars in China.
Shanghai Automotive Industry Corp, the parent of the company, agreed to invest about 1 billion yuan for 10% of the additional 7.21 billion shares priced at 13.87 yuan per share. The other investors include Baosteel Group and the garment maker Youngor Group, the company said in its filing to the Shanghai Stock Exchange.
China’s direct investment in non-financial sectors in 122 countries reached $47.56 billion in the first 11 months of the year, according to data from the Ministry of Commerce released on Wednesday.
The investment covered some 2,786 overseas enterprises mostly in Hong Kong, Australia, the United States and Russia.
China increased its holding of U.S. Treasuries for the fourth month in a row to reach the highest level in 11 months.
The U.S. Treasury Department said on Wednesday that China’s holdings of Treasury debt rose 2.6% in November to $906.8 billion from a month earlier. Japan was the second-largest holder of Treasury debt with $877.4 billion, up 1.5% from October.
The government signed new contracts with bid-winning home appliance manufacturers, paving the way for extending subsidies to rural buyers of home appliances next year.
According to the contracts, 15,290 models of televisions, refrigerators, washing machines, mobile phones, electromagnetic cookers, microwave ovens, air-conditioners, computers and water heaters can enjoy government subsidies for sales in rural areas.
A governmental research report issued on Wednesday predicted that the country’s economy would expand at 10% in 2010 from a year ago period with the gross domestic product reaching 37 trillion yuan.
In its Blue Book of China’s Society, the Chinese Academy of Social Sciences noted that in 2010 the country had made great efforts to keep its macro-economic policies “consistent” and that its economy had begin to recover.
Stock Movers
China Banking Regulatory Commission’s Shanghai branch ordered halts on lending to companies for fixed asset purchases until the end of this year, the Oriental Morning Post reported led to a decline in bank shares. | 
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