Markets

Chinese shares fall on inflation, monetary policy tightening fears

(Xinhua)
Updated: 2011-01-24 17:23

BEIJING - Chinese stocks weakened Monday as concerns about inflation and monetary policy tightening dented investor confidence.

The benchmark Shanghai Composite Index fell 0.72 percent, or 19.57 points, to 2,695.72 points.

The Shenzhen Component Index dropped 1.30 percent, or 151.04 points, to 11,488.92 points.

Related readings:  China stocks' declines will be limited  Investors bet on tighter policy controls

Combined turnover shrank to 160.9 billion yuan ($24.42 billion) from 172.7 billion yuan the previous trading day.

Losers outnumbered gainers 649 to 224 in Shanghai and 945 to 192 in Shenzhen.

Inflation and interest rate hike fears prompted the selloff, Investoday Securities analyst Tan Yongbo said.

China Life Insurance Co, the country's largest insurer, dropped 0.86 percent to 20.83 yuan per share.

Ping An Insurance (Group) Co, China's second-largest insurer, slumped 2.15 percent to 48.35 yuan per share.

Zijin Mining Group Co, China's largest gold producer, dropped 1.85 percent to 6.89 yuan per share.

CITIC Securities Co, China's biggest listed brokerage, lost 1.6 percent to 11.68 yuan per share.