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Shanghai stocks slump

SHANGHAI stocks shed 2.47 percent to close at the lowest level in a month following fresh regulatory curbs to rein in insurers’ aggressive investment in listed companies.

The benchmark Shanghai Composite Index fell to 3,152.97 points with trading volume at 294.3 billion yuan (US$43.3 billion).

The insurance regulator said late on Friday it had suspended Evergrande Life from stock market investment. Haitong Securities said that the tighter scrutiny had added to fears of tighter liquidity and sent the market into turbulence.

China Vanke, Gree Electric Appliances and China State Construction Engineering lost ground as they were among the listed companies that had soared on insurers’ share purchases. Vanke dropped 6.3 percent, Gree Electric and China State Construction lost 6.1 percent and 5 percent respectively.

Banks rebounded in afternoon trading. Bank of China added 1.39 percent to 3.64 yuan. Industrial and Commercial Bank of China was up 0.87 percent to 4.63 yuan.

Brokerages were also among the worst hit sectors. Guoyuan Securities sank 6.76 percent and GF Securities lost 4 percent yesterday.