Shanghai shares fall for 8th day amid liquidity concerns

Thu Dec 19, 2013 2:06am EST

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Dec 19 (Reuters) - Shanghai shares extended their losing streak to an eighth day in tepid trade on Thursday, as investors worried about rising funding costs hurting corporate profits after China's money rates spiked for a second day.

The CSI300 fell 1.1 percent, while the Shanghai Composite Index was down 1 percent at 2,127.79 points. Both fell to their lowest closes since Nov. 14.

Leading the falls were financial and shipping counters. Trading volumes in Shanghai remained weak, some 30 percent below the 20-day average. Wednesday's volume was the lowest in more than five months.

Analysts said investors were disappointed after China's central bank declined to inject fresh funds during open market operations. China's benchmark seven-day bond repurchase contract rose sharply again on Thursday following a similar rise the previous day. (Reporting by Yimou Lee; Editing by Richard Borsuk)

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