Chinese stocks take midday plunge

The Chinese stock market took a major drop in the morning session on Monday, weighed down by plunging property-related shares affected by the government's new property curbs. The benchmark Shanghai Composite Index lost 2.86 percent to end the morning session at 2,292.14. The Shenzhen Component Index plunged 4.52 percent to close at 9,213.97. The Chinese government announced a series of specific measures to regulate the real estate market on March 1, including a 20-percent individual income tax levied on second-home transactions. Cement producers and property developers suffered the most, as their sub-indices had tumbled 7.25 percent and 6.96 percent, respectively, by midday. The country's four major property developers saw losses approaching the 10-percent daily change cap. China Vanke Co., the largest in home sales, slumped 9.97 percent to end the morning sessions at 10.84 yuan (1.73 U.S. dollars) per share, while Poly Real Estate Group Co. fell 9.98 percent to 11.37 yuan. Other sectors, including the financial, building materials and coal industries, also marked substantial drops.