China: Stocks fall as banks check equities exposure

[HONG KONG] China stocks fell on Thursday after state media reported that banks were investigating their exposure to the stock market through wealth management products and loans collateralised with stocks.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen dropped 2.9 per cent, to 3,815.41, while the Shanghai Composite Index slid 2.2 per cent, to 3,705.73 points.

The China Securities Journal, citing unidentified bank officials, said on Thursday that Chinese banks had been checking their exposure to the stock market.

Some investors liquidated their positions ahead of month-end and took to the sidelines to see if stability could be maintained in the market, analysts said.

Gansu Dunhuang Seed led the rises in Shanghai stocks, up 10 per cent. In Shenzhen, Myhome Real Estate Development was also up 10 per cent.

Total volume of A shares traded in Shanghai was 45.57 billion shares, while Shenzhen volume was 29.89 billion shares.

REUTERS