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Chinese shares down 2.36 pct amid worries of further tightening measures (2) |
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20:08, July 16, 2007 |
The combined turnover stood at 91.5 billion yuan (12.1 billion U.S. dollars), slightly higher than the 84.4 billion yuan on Friday, but sharply lower than the daily level of more than 200 billion yuan in May.
The likelihood was high of a rise in interest rates to curb the widely estimated rapid economic growth and higher inflation in the first half, according to Huatai Securities.
China''s central bank has issued 101 billion yuan worth of three-year bills to commercial banks on Friday to rein in lending.
Dong Dezhi, an analyst with the global financial market department of Bank of China, said interest rate hikes had always come after the the issuance of central bank bills since May 2006
All the banks reported losses except the Citic Bank, which closed flat at 9.05 yuan. The Industrial and Commercial Bank of China slid 1.86 percent to 5.27 yuan and the Bank of China fell 1.95 percent to 5.03 yuan.
Other blue chips also led the decline. The Citic Securities, the country''s largest publicly traded brokerage, was down 4.97 percent to 52.98 yuan. The China Petroleum and Chemical Corporation, Asia''s largest oil refiner, lost four percent to 12.71 yuan.
Baoshan Iron and Steel, the nation''s largest steel producer, fell 3.96 percent to 10.91 yuan, and China Vanke, the nation''s largest real estate developer, declined 3.29 percent to 20.56 yuan.
The insurance shares, however, advanced. Analysts said the interest rate hikes would help to expand their earnings as some of their assets were deposited in banks.
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