HONG KONG Jan 6 China shares tumbled to
five-month lows on Monday, driven down by the financial sector
which was hit by new State Council guidelines strengthening
regulation of the shadow bank lending that has fuelled an
explosion of debt since 2008.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings ended down 2.3 percent at 2,238.6 points, its
lowest close since July 31. The Shanghai Composite Index
shed 1.8 percent.
The losses occurred in the strongest Shanghai volumes in
almost three weeks. Sentiment was further undermined by a survey
that said China's services industries grew in December by the
slowest pace in more than two years.
The new regulations include new restrictions on banks'
cooperation with trust companies, securities brokerages and
other intermediaries with which banks have transacted for
off-balance sheet business.
(Reporting by Clement Tan; Editing by Eric Meijer)