Stocks slide 2.9% on loan probe jitters

The mainland stock market fell sharply yesterday, with real estate shares leading the drop, as reports that the banking regulator was investigating a jump in companies' bill financing made investors nervous.

The Shanghai Composite Index slid 2.93 percent to 2319.441 points in hectic trade. It had risen 2.96 percent to a five-month high on Monday, bringing its gains this year to 31 percent.

Turnover in Shanghai A shares remained very heavy at 168.8 billion yuan, though it was down from 177.5 billion yuan on Monday, when full-day turnover neared levels last seen during the stock market bubble of 2007.