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China's shares fall slightly a day after record high

China's shares fall slightly a day after record high

China's main stock indexes fell Wednesday as some big-cap stocks declined a day after the Shanghai market hit a record high, but analysts said they still expect Chinese shares to rise further.
The Shanghai Composite Index fell 0.1 percent to 4869.88, down from Tuesday's record high of 4,872.79. The index briefly rose above 4,900 the first time during the session, reaching 4,916.21 before falling back.
The Shenzhen Composite Index for China's smaller second market dropped 0.4 percent to 1326.12.
The Shanghai index is up 27 percent since mid-July. Retail investors have been pouring their savings into shares in search of higher returns than those paid by banks. Analysts said that despite Wednesday's pullback, the main index was likely to rise about 5,000 in the near future.
The Shanghai index has posted seven record high closes so far this month.
Wednesday, Citic Securities lost 1.7 percent and Aluminum Corp. of China 2.3 percent.
"It seems that the hike in banks' reserve requirement ratio taking effect today has strained liquidity and thus weighed on the market," said Lu Xinwen, an analyst at China Merchants Securities.
The Chinese government has raised the amount of money banks must set aside as reserves nine times in just over a year in an effort to cool an economic boom.


Updated : 2021-10-23 07:09 GMT+08:00