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China shares extend losses, c. bank statement increases tightening fears
June 24, 2013 / 6:07 AM / 4 years ago

China shares extend losses, c. bank statement increases tightening fears

HONG KONG, June 24 (Reuters) - China’s CSI300 share index extended losses on Monday, with losses accelerating after the central bank reiterated that liquidity in the mainland remains “reasonable,” fanning fears that Beijing will not relent on tightening.

At 0602 GMT, the CSI300 was down 6.1 percent at 2,176 points, having broken below at least two support levels recorded in December. The Shanghai Composite Index was down 5.1 percent, dipping below the 2,000-point mark.

The Shanghai financials sub-index was down 7.1 percent, headed for its worst single day loss since November 2008.

The People’s Bank of China commented late Monday morning that liquidity in the country’s financial system is “reasonable”, repeating a line from a Sunday commentary in the official Xinhua news agency.

The commentary also said the latest spike in money market rates was a result of market distortions caused by widespread speculative trading and shadow financing. The central bank in its quarterly report on Sunday, pledged to “fine tune” existing “prudent” monetary policy. (Reporting by Clement Tan; Editing by Richard Borsuk)

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