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Chinese shares fall on liquidity concerns

(Xinhua)
Updated: 2010-01-20 16:56
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Chinese equities fell on Wednesday following media reports that some major banks would stop lending for the rest of January and the central bank would increase interest rate on Friday.

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The benchmark Shanghai Composite Index dropped 2.93 percent after rising for four consecutive days to close at 3,151.85 points.

The Shenzhen Component Index dived 3.25 percent, or 434.52 points, to close at 12,916.15 points.

Combined turnover totaled 326.6 billion yuan ($47.8 billion), up from 270.91 billion yuan on the previous trading day.

Losers outnumbered gainers by 771 to 108 in Shanghai and 765 to 55 in Shenzhen.