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Money

China shares fall 2% to fresh 7-month low

(Agencies)
Updated: 2010-05-05 11:57
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China's key stock index fell to a fresh seven-month low on Wednesday morning, dragged lower by bank and property shares, with weakness in overseas markets due to worries about Greece's debt woes weighing on sentiment.

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The Shanghai Composite Index fell as low as 2,778.4 points, down 2 percent and its lowest since Sept 30.

Analysts said bank shares were also weighed down by a local media report that said Industrial and Commercial Bank of China (ICBC) and Bank of China may alter their fundraising plans.

"Banks are the main fallers on the media report. The market is worried that the banks' may change their previous plans for selling shares," said Cao Xuefeng, analyst at Western Securities.

ICBC was down 1.6 percent, while Bank of China fell 1.7 percent. Merchants Bank was down 2.5 percent.