Posted 2019/2/24
The benchmark Shanghai Composite Index opened 0.66 percent lower at 2,099.72 points and tumbled at one point by more than 2 percent during trading in the morning session.
The Shenzhen Component Index lost 0.69 percent to open at 7,697.21 points. The index also plunged by more than 2.7 percent before morning trading closed.
Real estate stocks dived after unconfirmed media reports over the weekend said several banks were halting their loans to the real estate sector. China Enterprise Co., Ltd. fell by almost 10 percent; China Vanke, the nation's largest listed property developer, fell more than 6 percent.
The poor performance of the property sector also followed government data released on Monday that showed home prices dropped month on month in more Chinese cities in January, signaling a gradually cooling property sector.
On Monday, the value of the Chinese currency, the Renminbi or the yuan, continued to decrease against the U.S. dollar, marking decline for a fifth trading day. It weakened 13 basis points to 6.1189 against the dollar on Monday.
Analysts said concerns of an economic slowdown and impact from U.S. tapering of quantitative easing have dampened expectations for the appreciation of the Chinese currency.
