Chinese shares close down 3.43 percent

2008-07-15 08:12:53 GMT       2008-07-15 16:12:53 (Beijing Time)

Chinese share prices slumped 3.43 percent on Tuesday, with banks losing the most amid fears their profits will suffer if Beijing leaves its credit curbing policies in place, dealers said.

Banks and property developers were hardest hit as investors anticipated the government will maintain tough lending restrictions to fight inflation. Those sectors' earnings are most vulnerable if the central bank hikes interest rates.

China's key economic data for the second quarter, including June inflation figures, are due to be released on Thursday.

The benchmark Shanghai Composite Index, which covers both A and B shares, closed down 98.81 points at 2,779.45 on turnover of 75.2 billion yuan (11.0 billion US dollars).

The Shanghai A-share index shed 103.82 points, or 3.44 percent, to 2,915.29 on turnover of 75.0 billion yuan, while the Shenzhen A-share index was down 29.65 points, or 3.24 percent, to 884.31 on turnover of 40.3 billion yuan.


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