China's stocks slid for a fifth day Tuesday as market expectations for further rate hikes from the central bank to trim down inflation stayed.
The benchmark Shanghai Composite Index fell 1.66 percent, or 46.18 points, to finish at 2,735.22 points.
The Shenzhen Component Index closed down 1.95 percent, or 239.39 points, to end at 12,063.80 points.
Combined turnover was 178.88 billion yuan (27 billion U.S. dollars), down from 224.44 billion the previous trading day.
The People's Bank of China (PBOC), the central bank, reaffirmed Monday that it would give more prominence to stabilizing prices just one day after it raised the benchmark one-year lending and deposit interests rate by 0.25 percentage points for the second time in just over two months.
The PBOC has increased banks' reserve requirement ratio six times this year, taking it to 19 percent for some banks as rising inflation has become a priority issue for the government.
Most stocks declined Tuesday as losers outnumbered gainers 800 to 107 in Shanghai and 962 to 252 in Shenzhen.
The central bank also said Monday more credit should be channeled into the real economy, especially into programs concerning agriculture, the countryside, farmers, and medium-sized and small enterprises during the next year.
Shares of property developers led the downward trend in the broader market. China Vanke, the country's biggest real estate developer, dived 4.80 percent to 8.33 yuan. Poly Real Estate, the second largest, plunged 6.18 percent to 12.91 yuan.
Financial stocks fell across the board. The Industrial and Commercial Bank of China fell 1.69 percent to 4.08 yuan. The Agricultural Bank of China dropped almost 2 percent to 2.56 yuan.
Bucking the trend, shares of gold producers gained on rising gold prices in international markets. Zhongjin Gold Corp. Ltd., rose 0.34 percent to 38.22 yuan. Shandong Gold-Minig Co., Ltd. added 0.74 percent to 50.64 yuan.
Liquor stocks gained on expectations of robust sales as the New Year holiday and China's Spring Festival approach. China's leading liquor producer Kweichow Moutai Co. gained 0.15 percent percent to close at 183.26 yuan.
The benchmark Shanghai Composite Index fell 1.66 percent, or 46.18 points, to finish at 2,735.22 points.
The Shenzhen Component Index closed down 1.95 percent, or 239.39 points, to end at 12,063.80 points.
Combined turnover was 178.88 billion yuan (27 billion U.S. dollars), down from 224.44 billion the previous trading day.
The People's Bank of China (PBOC), the central bank, reaffirmed Monday that it would give more prominence to stabilizing prices just one day after it raised the benchmark one-year lending and deposit interests rate by 0.25 percentage points for the second time in just over two months.
The PBOC has increased banks' reserve requirement ratio six times this year, taking it to 19 percent for some banks as rising inflation has become a priority issue for the government.
Most stocks declined Tuesday as losers outnumbered gainers 800 to 107 in Shanghai and 962 to 252 in Shenzhen.
The central bank also said Monday more credit should be channeled into the real economy, especially into programs concerning agriculture, the countryside, farmers, and medium-sized and small enterprises during the next year.
Shares of property developers led the downward trend in the broader market. China Vanke, the country's biggest real estate developer, dived 4.80 percent to 8.33 yuan. Poly Real Estate, the second largest, plunged 6.18 percent to 12.91 yuan.
Financial stocks fell across the board. The Industrial and Commercial Bank of China fell 1.69 percent to 4.08 yuan. The Agricultural Bank of China dropped almost 2 percent to 2.56 yuan.
Bucking the trend, shares of gold producers gained on rising gold prices in international markets. Zhongjin Gold Corp. Ltd., rose 0.34 percent to 38.22 yuan. Shandong Gold-Minig Co., Ltd. added 0.74 percent to 50.64 yuan.
Liquor stocks gained on expectations of robust sales as the New Year holiday and China's Spring Festival approach. China's leading liquor producer Kweichow Moutai Co. gained 0.15 percent percent to close at 183.26 yuan.
