Chinese shares tumble 1.44% on weak financial, property sectors

Chinese equities on Thursday fell the most in two weeks as financial and property shares continued to slide, with the benchmark Shanghai Composite Index down 38.94 points, or 1.44 percent to close at 2,656.35.

The Shenzhen Component Index dropped 257.43 points, or 2.2 percent, to end at 11,465.35.

Combined turnover expanded to 297.99 billion yuan (43.82 billion U.S. dollars) from 252.43 billion yuan on the previous trading day.

Losers outnumbered gainers by 706 to 169 in Shanghai and 797 to 253 in Shenzhen.

Financial shares fell 1.52 percent as market rumors said China's banking regulator is planning to order its commercial banks to put aside no less than 2.5 percent of their total loans as reserves to curb loan growth.

Industrial and Commercial Bank of China, the country's biggest lender, was down 0.73 percent to 4.06 yuan, while Bank of China, the third largest, dropped 0.89 percent to 3.34 yuan per share.

Widespread worries over the property market were renewed Thursday, dragging down the sector by 2.52 percent.

Xia Bin, a member of the monetary policy committee of the People's Bank of China, said during the ongoing 2nd World Investment Forum (WIF) in China's southeastern Xiamen City Wednesday that the government would stick to its property market tightening measures.

China Vanke Co., the country's biggest developer, dropped 3.38 percent to 8.28 yuan per share. Poly Real Estate Group Co., the country's second-largest, shed 4.07 percent to 11.32 yuan per share.

Drugmakers and pesticide producers bucked the trend by rising 0.15 percent and 0.32 percent, respectively, on media reports that tick bites had caused 18 dead and more than 500 infected in China.

Tick-killing pesticide producer Hubei Sanonda Co.Ltd. rose by the daily limit of 10 percent to 10.21 yuan.

Source: Xinhua