Shanghai shares open slightly down after interest rate rise

Write: Petara [2011-05-20]

Shanghai's benchmark stock index opened down 0.1 percent on Wednesday, after the central bank raised interest rates on Tuesday for the fourth time since October.

The financial sub-index opened up 0.7 percent, with top lender Industrial and Commercial Bank of China up 0.4 percent, as the rate hike is seen as positive for banks.

The property sub-index opened up 0.4 percent, with the country's largest property developer China Vanke down 0.9 percent.

The central bank lifted benchmark one-year deposit rates by 25 basis points to 3.25 percent, while lifting one-year lending rates by 25 basis points to 6.31 percent, effective on Wednesday.