China shares close at five-day low as service sector growth slows

HONG KONG Fri Jan 3, 2014 2:10am EST

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HONG KONG Jan 3 (Reuters) - Shanghai shares broke below key technical support levels on Friday, dragged down by Chinese financial and energy sectors, after another government survey indicated the world's second-largest economy was losing momentum.

On Friday, the Shanghai Composite Index ended down 1.2 percent and fell below the 2,100 support level to 2,083.13 points. The CSI300 index of the leading Shanghai and Shenzhen A-share listings dropped 1.3 percent to its five-day low.

For the week, the indexes fell 0.9 and 0.6 percent, respectively.

Chinese financial and cyclical stocks were leading losers. China Life Insurance declined 2.6 percent to its lowest in two weeks, while the Shanghai listing of China's biggest oil refiner Sinopec dropped 1.8 percent to a two-month low.

Growth in China's services sector slipped to a four-month low in December as business expectations dropped, a survey showed, adding to evidence China's economy lost steam in late 2013.

Earlier this week, two manufacturing surveys showed factory growth slowed in December. (Reporting by Yimou Lee; Editing by Richard Borsuk)

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