Shanghai shares end at 3-week low on new bank rules and weak data

HONG KONG Mon May 19, 2014 3:13am EDT

HONG KONG May 19 (Reuters) - Shanghai shares plunged to a three-week low on Monday as financials and property stocks fell following stiffer regulations on interbank lending and more evidence of cooling in the property market.

The Shanghai Composite Index ended down 1.1 percent at 2,005.18 points, the lowest close since April 28. The CSI300 of the leading Shanghai and Shenzhen A-share listings lost 1.4 percent, reaching its lowest close since March 20.

Chinese banks were the biggest drag for mainland markets in the morning session, following tougher rules on interbank loans announced late on Friday.

The finance index slipped 1.9 percent, with almost all banks declining. Among the top losers, Industrial Bank Co Ltd and China CITIC Bank Corporation Limited both dropped 2.8 percent.

The Chinese property sector was weakened by data on Sunday that showed average new home prices slowed to a near one-year low in April.

China Fortune Land Co Ltd ended down 8.3 percent.

The beverage-sector also fell. Kweichow Moutai Co Ltd slid 4.6 percent after a price cut by competitor Wuliangye Yibin Co Ltd sparked speculation of similar moves. Wuliangye was down 2.5 percent. (Reporting by Grace Li; Editing by Richard Borsuk)

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