Mainland shares post biggest monthly loss since May

SHANGHAI - Most stocks on the Chinese mainland fell, driving the benchmark index to its biggest monthly loss since May, as smaller companies slid on speculation that tighter credit will curb earnings growth and US consumer confidence declined.

"The stock market hasn't shown signs of bottoming out and may continue to head downward for the short term," said Yan Ji, investment director at HSBC Jintrust Fund Management Co, which manages $1.6 billion.

"Investors should be cautious, given the central bank's determination to tighten monetary policy to fight inflation."