Financial companies lead fall in equities

SHANGHAI: China's stocks declined the most in seven weeks, led by financial companies and commodity producers, after an unexpected shift by the central bank to restrain lending spurred concern that higher interest rates will follow.

Industrial & Commercial Bank of China dropped 4.7 percent to 5.09 yuan, the most since October 2008. Poly Real Estate Group Co slumped 4.1 percent to 20.43 yuan. The central bank raised the proportion of deposits that banks must set aside as reserves by 50 basis points starting Jan 18.

Jiangxi Copper Co dropped 5.6 percent to 38.02 yuan on concern tighter credit will sap demand for commodities.