Market Chatter: China Stocks Fall Most in Week on Lending Concern as Banks Drop

By Staff,

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China's stocks fell, capping the benchmark index's biggest loss in a week, as concern that new bank lending isn't picking up overshadowed a rally for airlines, Bloomberg reported earlier Monday.

It said China Citic Bank Corp. and Huaxia Bank Co. led declines for financial companies, sliding at least 1.2%. Baoshan Iron & Steel Co., the largest-listed steelmaker, lost 3.1% after reporting a 14% drop in first-half profit. It added China Eastern Airlines Corp., the second-biggest domestic carrier, surged by the daily limit in Shanghai on the prospect it will benefit from an aviation investment fund.

The Shanghai Composite Index (SHCOMP) fell 0.5% to 2,229.27 at the close, the biggest loss since Aug. 14. Concerns about the strength of the recovery have grown after data this month showed the weakest credit growth since 2008 and an unexpected slowdown in industrial output. The nation's four biggest banks made new loans of about 56 billion yuan ($9.1 billion) in the first 17 days of August, Caixin reported Aug. 22, without citing anyone.

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This article appears in: Investing Commodities
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