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Property rumors drive key index to two-week low

By Xie Yu in Shanghai | China Daily | Updated: 2014-02-25 07:29

China's A-share market sank to a two-week low on Monday, dragged down by falling property and banking shares amid rumors that banks have stopped extending loans to property-related companies.

The benchmark Shanghai Composite Index retreated by a significant 1.75 percent at the close. Turnover expanded to 107.2 billion yuan ($17.6 billion) from 99.5 billion yuan on the previous trading day.

Messages have been spreading online since Saturday night that Industrial Bank Co Ltd, based in East China's Fujian province, had stopped lending to property companies. More reports followed, saying more banks are tightening loans to steel, cement and other property-related sectors.

Property rumors drive key index to two-week low

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