China shares post 1st weekly loss in six ahead of holiday

HONG KONG, June 7 Fri Jun 7, 2013 3:07am EDT

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HONG KONG, June 7 (Reuters) - China's CSI300 share index posted its first weekly loss in six, with investors on Friday spooked by tight money supply as cash demand spiked ahead of a three-day Dragon Boat Festival holiday next week.

The CSI300 of the leading Shanghai and Shenzhen A-shares listings, falling for an eighth consecutive day, closed down 1.7 percent on Friday at 2,484.2 points. It slid 4.7 percent this week.

The Shanghai Composite Index slid 1.4 percent in its seventh-straight daily loss. On the week, it declined 3.9 percent. Mainland Chinese markets are shut from Monday to Wednesday and will resume trading next Thursday.

China's money rates skyrocketed on Friday from already-high levels the previous day, pushed up partly on rumours that a mid-sized bank had failed to repay an interbank loan. Dealers said that virtually the entire market was short of cash, with few or no banks willing to lend. (Reporting by Clement Tan; Editing by Richard Borsuk)

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