China shares at 5-wk closing low on tightening fears

SHANGHAI, March 15 (Reuters) - China's key stock index fell 1.21 percent to its lowest close in five weeks on Monday, as investors expect the central bank to step up tightening measures after the release of higher-than-expected inflation data last week.

The Shanghai Composite Index .SSEC ended at 2,976.939 points, extending Friday's 1.24 percent drop and breaching the psychologically important 3,000-point level.

"The market is eyeing an imminent rise in banks' reserve ratios and there is growing concern over further policy tightening," said Xu Yinhui, analyst at Guotai Junan Securities.

The Chinese central bank is seen raising banks' reserve requirement ratios as early as this week, although some players say it may wait a while before raising benchmark deposit and lending rates.

Losing Shanghai stocks outnumbered winners by 631 to 255, while turnover fell to a one-month low of 75 billion yuan ($10.99 billion) from Friday's 84 billion yuan. ($1=6.825 Yuan) (Reporting by Farah Master; Editing by Edmund Klamann)