Tightening fears send shares down

SHANGHAI - Mainland stocks declined for the first time in three days on concern the government is extending its tightening measures from the property industry to commodities to curb overcapacity.

"The tightening measures that have already been put in place aren't likely to reversed or eased in the short term," said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co.

"There's already a consensus view among investors that economic growth has peaked."

The Shanghai Composite Index fell 18.83, or 0.73 percent, to close at 2569.87. The CSI 300 Index lost 0.9 percent to 2758.50 on Wednesday.

Gauges of energy and materials stocks slid 1.9 percent and 1.7 percent respectively on Wednesday.

Bloomberg News

(China Daily 06/24/2010 page17)