SHANGHAI Nov 30 China's blue-chip stock index
slid on Wednesday, snapping a 7-session winning streak, as raw
material stocks tanked after commodity prices were hit by fears
of a liquidity squeeze.
The blue-chip CSI300 index fell 0.7 percent, to
3,538.00 points, while the Shanghai Composite Index lost
1 percent to 3,250.03 points.
For the month, CSI300 was up 6.0 percent, while SSEC was up
4.8 percent, in their biggest monthly advance since March.
Echoing the recent strong rally, a Reuters poll showed
Chinese fund managers have raised suggested equity exposure for
the next three months to the highest since June.
However, analysts said moves by China's central bank in
recent days to shore up a sliding yuan were sucking additional
liquidity from the system and raising fears of a cash crunch.
Coking coal futures and construction product steel rebar
tumbled, while Shanghai lead and zinc led steep falls across
Yuan borrowing costs surged after the central bank pulled
funds from the financial system, making investments in
commodities and equities more expensive and less attractive.
Shares in big-cap industry leaders took a breather, while
investors were also selling resources shares on a broad retreat
in futures market after major commodity exchanges introduced
further measures to tame wild price moves.
Index heavyweights material and energy stocks
slumped, dampening sentiment in the market.
Most sectors lost ground. Properties were among
the few sectors making gains, thanks to China Evergrande
further boosting its stake in China Vanke
(Reporting by Luoyan Liu and John Ruwitch; Editing by Shri