BEIJING -- Chinese share prices slumped heavily on Monday on uncertainties in the consumer price index movement and impact of the May 12 earthquake, with heavyweights, including PetroChina, China Life and banking stocks, the major drivers of the plunge.
The benchmark Shanghai Composite Index dropped 108.55 points, or 3.13 percent, to close at 3.364.54 points.
The Shenzhen Component Index on the Shenzhen Stock Exchange market closed at 11,890.17 points, down 326.22 points, or 2.67 percent.
Most heavyweights dropped on Monday. PetroChina, the largest stock on China's A-share market, was down 2.83 percent. China Life, China's largest life insurance company, saw a 5.09 percent drop.
The three listed state-owned commercial banks all closed lower. China Communications Bank, a joint-stock commercial bank, slumped 3.1 percent to close at 8.74 yuan per share, hitting a record low since its initial public offering in September last year.
The telecom sector continued strong following the unveiling of the industry reshuffle and plans for third generation mobile communication (3G). Datang Mobile, a provider of home-grown 3G technology, rose by the daily limit of 5 percent.
The Hushen 300 Index reflecting the performance of both the Shanghai and Shenzhen stock exchanges closed at 3,559.22 points, losing 115.93 points, from the previous close.
The combined turnover shrank to 104.5 billion yuan ($15.1 billion) from the previous trading day's 117 billion yuan, indicating investor timidity following the devastating southwest China earthquake.
However, analysts with Goldman Sachs and Merrill Lynch believed the quake would have little effect on the national economy.
On Monday, losses outnumbered gains by 706 to 136 in Shanghai, and 506 to 79 in Shenzhen.
