HONG KONG, June 24 (Reuters) – China shares extended losses
in early Monday trade, with Chinese banks leading the downward
spiral after official news reports over the weekend suggested
Beijing will crack down on shadow banking, blamed for the cash
crunch in the mainland.
By 0203 GMT, the CSI300 of the leading Shanghai
and Shenzhen listings was down 3.3 percent at 2,240.7 points,
its lowest intra-day level since mid-December. A break below
this level, a key chart support, may point to further losses.
The Shanghai Composite Index was down 2.3 percent.
There is ample liquidity in China and the latest spike in
money market rates was a result of market distortions caused by
widespread speculative trading and shadow financing, state news
agency Xinhua said in a commentary on Sunday.
(Reporting by Clement Tan; Editing by Jacqueline Wong)
