China stocks end at 8-mth low on tightening worries

SHANGHAI May 6 (Reuters) - China's key stock index ended down 4.1 percent on Thursday at an eight-month closing low, on concerns that the government may take new steps to curb speculation in the property sector.

The Shanghai Composite Index .SSEC fell to 2,739.7 points, its lowest since Sept. 2, its second-biggest percentage fall this year, erasing a modest technical bounce the day before.

Analysts said rumours of new tightening policies, including a general property tax, was the main drag on the index.

"There is concern that once and if the measures appear, it will worsen sentiment for the property and financial sectors," said Wu Nan, analyst at Xiangcai Securities.

Wu said that the rebound on Wednesday had not been strong enough to sustain upward momentum on the index.

"Property stocks still have room to fall," Wu added.

Concerns that Greece's debt woes would trigger a broader crisis and an announcement from Hua Xia Bank (600015.SS) that it would issue a private share placement also weighed on the market.

"The falls in overseas markets, particularly the U.S., are affecting trading today," said Wu.

Shanghai's property sub-index .SSEP slumped 5.2 percent.

Shares in China's Hua Xia Bank fell their 10 percent limit after it announced plans to raise up to 20.8 billion yuan ($3.05 billion) via a private share placement. [ID:nTOE645001]

Losing Shanghai stocks outnumbered gainers by 844 to 62, while turnover was 113 billion yuan ($16.6 billion), unchanged from Wednesday. ($1=6.826 Yuan) (Reporting by Farah Master; Editing by Jacqueline Wong)