Anhui Conch Cement Co. plunged the most in almost three years in Shanghai, leading declines for cement companies, on concern slowing investment in housing and railways will curb demand for building materials.
Anhui Conch, China’s biggest cement maker, fell 8.8 percent to CNY19.99 as of 1:56p.m. local time, poised for the biggest drop since November 2008. The stock slid as much as 10 per cent, the daily limit. The Shanghai Composite Index lost 1.7 per cent. The Hong Kong-traded shares slumped 7.2 per cent to HK$29.50.
"Cement prices remain flat in the peak season instead of going up, which raised concerns about demand," Zhu Jixiang, a cement-company analyst at Capital Securities Corp. in Shanghai, said in a telephone interview today. "Construction of railways and new housing hasn’t met market expectations. All these negative factors are taking their toll on cement shares today."