Property, banking sectors drag down A-share market

A Chinese investor reacts at a stock brokerage house in Hangzhou, Zhejiang province, Feb 24, 2014. [Long Wei/Asianewsphoto]

Property and banking sectors dragged China's A share market down by 1.75 percent to a two-week low on Monday.

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The benchmark Shanghai Composite Index slumped to a two-week low at 2076 at close, after the news report said banks have stopped extending loans to property developers.

China's biggest property developer Vanke dived more than 6.6 percent in Shenzhen and the rival Poly Real Estate retreated more than 8.5 percent in Shanghai.

Fifteen of the 16 A-share listed banks saw price drop on Monday.

Online messages have been spreading from Saturday night that some banks have started to tighten loans to steel, cement and other property-related sectors.

Although some related banks have denied the message, property shares were still hit severely on Monday.

 

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