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Credit contraction jitters trigger decline in equities

By Li Xiang | China Daily | Updated: 2010-01-21 07:56

Equities declined yesterday amid concerns over tighter lending controls and the stronger-than-expected inflationary pressure in the market.

The benchmark Shanghai Composite Index fell 2.93 percent to 3,151.85 points, while the Shenzhen Component Index fell 3.25 percent to 12,916.25 points.

Sentiment was dampened by rumors that the People's Bank of China, the country's central bank, may raise benchmark interest rates by 0.27 percentage points as early as Friday. There were also reports that the authorities would re-impose stamp tax on stock purchases.

Credit contraction jitters trigger decline in equities

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