European debt, loan data sink Chinese equities

SHANGHAI - Stocks on the Chinese mainland fell the most in seven weeks on concern that Europe's debt crisis could spread and higher-than-estimated new loans and money supply could make it difficult for China's government to ease its tightening policies.

Jiangxi Copper Co and China Shenhua Energy Co, the nation's biggest producers of copper and coal, slumped at least 3 percent on speculation demand for commodities will falter. Poly Real Estate Group Co, the nation's second-largest developer by market capitalization, retreated the most in three months after the Xinhua News Agency reported Shanghai will start a trial to cap prices of newly built low-income housing.

"The European debt problem will boost concerns about liquidity in global markets as well as China's exports to the region," said Larry Wan, Beijing-based head of investment at Union Life Asset Management Co, which manages the equivalent of $2.2 billion.