HONG KONG, March 5 China shares sank on
Wednesday, led by the banking sector on fears of a possible
default by a listed company and on Beijing's plan to introduce
deposit insurance, a move towards freeing up deposit rates.
The Shanghai Composite Index, which fell 0.2 percent
on Tuesday, closed down 0.9 percent at 2,053.1 points. The
CSI300 of the largest Shanghai and Shenzhen A-share
listings also dropped 0.9 percent.
The Nasdaq-style ChiNext Composite Index of
mainly high tech startups listed in Shenzhen rose 0.3 percent.
In what would be the country's first domestic bond default,
loss-making Chinese solar equipment producer Chaori Solar
said it will not be able to meet interest payments
on bonds due on Friday.
In a State of the Union-style address at the start of
China's annual parliament meeting on Wednesday, Premier Li
Keqiang said Beijing aims to grow the world's second-largest
economy this year by 7.5 percent, the same target as set for
(Reporting by Clement Tan; Editing by Richard Borsuk)