| Domestic shares fall amid measures to cool markets |
SHANGHAI, June 29 -- CHIENSE mainland stocks fell today after regulators carried out a slew of market cooling measures amid expectations more were on the way.
The benchmark Shanghai Composite Index slid 2.4 percent at 3,820.70. That followed a 4 percent slump yesterday. The Shenzhen Composite Index of China's second, smaller market fell 3.1 percent to 1,077.92, The Associated Press reported.
China's legislature today approved a proposal to cut or suspend a 20 percent tax on interest income, a move aimed at diverting funds from the booming stock market.
Meanwhile, China's banking regulator issued a statement urging small- and medium-sized banks to prevent clients from illegally investing loans in stocks and real estate.
"The market's trend has been increasingly tied up to policy actions. Meanwhile, such a high-frequency of cooling steps as seen recently clearly indicates regulators' intention to prevent the stock market from getting overheated," said Wu Jianxiong, an analyst at Guotai Junan Securities.
Among the actively traded companies today, insurance-to-port conglomerate Orient Group fell by the daily 10 percent limit to 30.86 yuan (US$ 4.04), China Life Insurance fell 4 percent to 41.11 yuan and Shanghai International Airport fell 4.3 percent to 38.01 yuan.
"The market's near-term outlook is murky with rumors over government action looking like they are about to materialize," said Tang Xiaosheng, an analyst at Guosen Securities.
In currency dealings, the Chinese yuan fell back against the U.S. dollar following the greenback's rebound overnight.
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