Chinese shares fall 1.79 pct in morning trade

Chinese share prices were 1.79 percent lower in Tuesday morning trade as tighter credit conditions, soaring oil prices and a glut of new share offerings soured sentiment, dealers said.

Investors were worried the government would take further measures to slow credit as it tries to rein in inflation amid high oil prices, traders said.

The benchmark Shanghai Composite Index, which covers A and B shares, lost 49.01 points to 2,687.09 at 10:35 am (0235 GMT).

Beijing's attempts to tighten the money supply last month led to the market losing more than a fifth of its value.

Concerns over new share offers also weighed down the index as investors worried the extra supply of shares would hit stock market performance.

The securities regulator said late Monday it had approved applications for initial public offerings in Shanghai by Everbright Securities and China South Locomotive and Rolling Stock Corp.

The Shanghai A-share index was down 51.48 points or 1.79 percent to 2,818.45, while the Shenzhen A-share index shed 13.64 points or 1.64 percent to 816.56.

(Agencies)