China H-shares suffer 3rd straight daily loss, banks slide

HONG KONG Mon Jan 6, 2014 3:08am EST

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HONG KONG Jan 6 (Reuters) - Offshore Chinese shares listed in Hong Kong posted a third-straight daily loss on Monday, led by financial counters after the State Council issued new curbs on shadow bank lending that has caused debt levels to spike since 2008.

The China Enterprises Index of the top offshore Chinese listings in Hong Kong ended down 1.4 percent.

The Hang Seng Index slipped 0.6 percent to 22,684.2 points, its lowest close since Nov. 14.

The new guidelines call for closer monitoring and tighter regulation of banks' off-balance-sheet lending, which is often conducted through intermediaries such as trust companies and securities brokerages.

Sentiment was further undermined by a survey showing activity in China's services sector grew in December by the slowest pace in more than two years. More data is due starting later this week, with trade expected from Wednesday, and fourth-quarter GDP growth on Jan. 20.

Guangzhou Automobile Group jumped 3.3 percent after it said late last Friday that vehicle sales grew more than 41 percent in December to 141,895 units.

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