Money

China's stocks close mixed, with banks down - Oct 22

(Xinhua)
Updated: 2010-10-22 15:53

Chinese shares ended mixed Friday, with the Shanghai Composite Index driven lower by banks as investors grew concerned about higher interest rates.

The benchmark Shanghai Composite Index closed 0.28 percent, or 8.49 points, lower at 2,975.04.

The Shenzhen Component Index climbed 0.87 percent, or 113.46 points, to finish at 13,224.98.

Combined turnover dropped slightly to 353 billion yuan ($53.02 billion) from 360.8 billion yuan the previous trading day.

Gainers outnumbered losers 472 to 387 in Shanghai and 772 to 306 in Shenzhen.

Banks declined amid speculation that interest rates will rise after official data released Thursday showed the September consumer price index hitting a 23-month high of 3.6 percent.

Zhou Xiaochuan, governor of China's central bank, said in a statement on the bank's website Thursday the risks of excessive liquidity, inflation, asset bubbles and bad loans will "increase significantly."

The government has a full-year inflation target of 3 percent.

Industrial and Commercial Bank of China shares lost 0.67 percent to finish at 4.48 yuan while Bank of China shares shed 1.41 percent to close at 3.50 yuan.

Coal stocks gained after the government Thursday urged industry consolidation.

Datong Coal Industry Co jumped 3.82 percent to 25.81 yuan while Anhui Hengyuan Coal-Electricity Group Co added 1.54 percent to finish at 49.55 yuan.