HONG KONG, June 7 China's CSI300 share index
posted its first weekly loss in six, with investors on Friday
spooked by tight money supply as cash demand spiked ahead of a
three-day Dragon Boat Festival holiday next week.
The CSI300 of the leading Shanghai and Shenzhen
A-shares listings, falling for an eighth consecutive day, closed
down 1.7 percent on Friday at 2,484.2 points. It slid 4.7
percent this week.
The Shanghai Composite Index slid 1.4 percent in its
seventh-straight daily loss. On the week, it declined 3.9
percent. Mainland Chinese markets are shut from Monday to
Wednesday and will resume trading next Thursday.
China's money rates skyrocketed on Friday from already-high
levels the previous day, pushed up partly on rumours that a
mid-sized bank had failed to repay an interbank loan. Dealers
said that virtually the entire market was short of cash, with
few or no banks willing to lend.
(Reporting by Clement Tan; Editing by Richard Borsuk)