Shares fall as investors become cautious

Source: Xinhua | 2018-08-31

SHANGHAI shares fell more than 1 percent yesterday as investors turned cautious and decided to wait and see after China’s banking regulator said it would control financial risks in rest of this year.

The Shanghai Composite Index shed 1.14 percent to 2,737.74 points.

The China Banking and Insurance Regulatory Commission said on Wednesday night that it will conduct a three-year action plan to prevent financial risks in both the banking and insurance sectors for the rest of the year.

The CBIRC added it will enhance control over Internet finance and improve lending practices on property to fend off a real estate bubble, said a statement released on its official website.

Shares of telecommunication firms, computer companies, as well as iron and steel providers were among the biggest decliners. Telecom shares fell 2.82 percent and iron and steel makers lost 2.37 percent.

Huada Automotive Technology Co Ltd shed 4.86 percent to 18.40 yuan (US$2.69) and Xinyu Iron & Steel Co Ltd fell 4.49 percent to close at 6.59 yuan.