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[image: Print] <javascript:window.print()> Asian Stocks Fall From Record; China, Citic Securities Tumble By Darren Boey and Hanny Wan Feb. 27 (Bloomberg) -- Asian stocks fell from a record. China's shares tumbled the most in 10 years on concern the Chinese government may introduce measures to cool the stock markets as the National People's Congress meets next week. China Vanke Co., the nation's biggest property developer, and China United Telecommunications Corp., which controls the country's second-largest mobile-phone operator, both plunged by the 10 percent daily limit. ``China stocks are under attack because investors are cautious ahead of the NPC,'' said Kenny Tang, associate director of research at Tung Tai Securities Co. in Hong Kong. ``They are concerned that China will consider the stock market to be overheated and do something to cool it down.'' China Mobile Ltd. led Hong Kong's Hang Seng Index 1.8 percent lower on concern spending on a high-speed wireless network will exceed investors' expectations. Sumitomo Mitsui Financial Group Inc. dropped on speculation a rate increase by the Bank of Japan last week won't be enough to boost profits. The Morgan Stanley Capital International Asia-Pacific Index lost 0.3 percent to 148.10 as of 6:07 p.m. in Tokyo. It closed at a record 148.51 yesterday. Its relative strength index, based on a 14-day moving average, rose to 74.9yesterday, above the 70 threshold some investors use as a trigger to sell shares. China's Shanghai and Shenzhen 300 Index slumped 9.2 percent from a record high. It had jumped 13 percent in the past six sessions. The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, plunged 8.8 percent, the most since Feb. 18, 1997. Japan's Nikkei 225 Stock Average lost 0.5 percent. Benchmarks in Australia and South Korea dropped from all-time highs. All other markets fell, except in Taiwan which was little changed. Further Measures? China Vanke lost 1.58 yuan to 14.26. United Telecommunications declined 0.54yuan to 4.89. Baoshan Iron & Steel Co., China's biggest steelmaker, slid 10 percent to 9.03 yuan. Citic Securities Co., China's biggest brokerage, dropped 9.7percent to 36.21 yuan, its biggest drop since Jan. 17. Investors are concerned China may introduce further austerity measures around the time government leaders meet for a meeting of the NPC, China's legislature, which starts March 5. The Chinese government said this week the State Council had approved a special task force to clamp down on illegal share offerings and other banned activities in the stock markets. Last month, China's benchmark tumbled 11 percent in four days after Cheng Siwei, vice chairman of the NPC, said shares were overvalued. The Shenzhen and Shanghai index has gained 135 percent in the past 12 months. `Nervous About Gains' ``The market's very sensitive as it's been trading at record levels and some stocks are considered overvalued,'' said Fan Dizhao, who helps manage the equivalent of $1.8 billion with Guotai Asset Management Co. in Shanghai. ``Investors are nervous about recent rapid gains and are not convinced further share-price increases can be sustained.'' Mitsubishi Estate Co., Japan's No. 2 property developer, slid 3.1 percent to 3,790 yen. The shares climbed 27 percent this year to yesterday's close and reached a record of 4,000 yen on Feb. 23. Westfield Group, the world's biggest owner of shopping malls, slid 2.2percent to A$22.26. The shares have gained 6 percent this year, compared with a 2.5 percent gain in the S&P/ASX 200 Property Trust Index. Westfield said today that second-half operating profit gained 7.6 percent. `Overvaluation' BlueScope Steel Ltd., Australia's biggest steelmaker, dropped 1.5 percent to A$9.70. Brokerages including Citigroup Inc. and JPMorgan Chase & Co. cut their recommendations on the stock, citing valuation concerns. BlueScope shares have gained 13 percent this year. ``There are signs of overvaluation in the market,'' said Paul Xiradis, who helps manage $6.9 billion at Ausbil Dexia Ltd. in Sydney. ``Certainly you're seeing brokers coming out and downgrading the likes of BlueScope, and the property sector including Westfield has been at full value for some time.'' Hana Financial Group Inc., South Korea's fourth-largest financial services company by assets, lost 3.5 percent to 52,500 won. The stock has advanced 7.4 percent this year, compared with a 1.4 percent increase in the benchmark Kospi index. China Mobile, the world's largest cell-phone operator by users, fell 2.9percent to HK$74.90. China's investment in third- generation mobile-phone services may more than triple next year to 100 billion yuan ($12.9 billion), the China Securities Journal reported today, citing a report by the State Information Center. China Mobile Communications Corp., the parent of Hong Kong- listed China Mobile, may offer 3G services from the end of October, the Beijing-based Economic Observer newspaper reported on Feb. 12, citing an unidentified company executive. Japanese Banks Sumitomo Mitsui, Japan's No. 3 bank, dropped 2.5 percent to 1.16 million yen. Mitsubishi UFJ Financial Group Inc., the biggest, fell 1.3 percent to 1.49 million yen. Bank of Japan Governor Toshihiko Fukui said Feb. 23 that interest rates will stay ``very low'' following the bank's decision to raise borrowing costs two days earlier. The Topix Banks Index climbed 7.9 percent in the eight trading sessions prior to Fukui's comments on Feb. 23 on optimism higher interest rates would allow them to boost lending margins. Newcrest Mining Ltd., Australia's largest gold mining company, surged 5.9percent to A$23.87, its biggest gain in 11 months, after its first-half profit, excluding one-time items, rose 5 percent because of higher metal prices. BlueScope Steel Ltd. (BSL AU) China Mobile Ltd. (941 HK) China Vanke Co. (000002 CH) Citic Securities Co. (600030 CH) Hana Financial Group Inc. (086790 KS) Mitsubishi Estate Co. (8802 JT) Mitsubishi UFJ Financial Group Inc. (8306 JT) Newcrest Mining Ltd. (NCM AU) Sumitomo Mitsui Financial Group Inc. (8316 JT) Westfield Group (WDC AU) Wuliangye Yibin Co. (000858 CH) To contact the reporter on this story: Darren Boey in Hong Kong at [EMAIL PROTECTED] ; Zhang Shidong in Shanghai at at [EMAIL PROTECTED] *Last Updated: February 27, 2007 04:10 EST* [image: Print] <javascript:window.print()> Terms of Service <http://www.bloomberg.com/notices/tos.html> | Privacy Policy <http://www.bloomberg.com/notices/privacy.html> | Trademarks<http://www.bloomberg.com/notices/trademarks.html>