Fears over the great China tightening continue to dominate markets there, with both major indices falling in overnight trading.
- Hang Seng down 1.33%
- Shanghai Composite down 0.46%
Now there are reports some banks in China are being restricted from lending to corporations.
From Bloomberg (emphasis ours):
China Construction Bank Corp. and Bank of China Ltd. paced losses for lenders after the Oriental Morning Post reported regulators in Shanghai ordered halts on lending to companies for purchases of fixed assets. Jiangxi Copper Co. slid 2.5 per cent as metal prices slumped. Kweichow Moutai led gains for liquor makers after it announced it would raise prices by 20 per cent.
Anything associated with the construction space is likely to feel a hit from that.
Check out the drop in the Hang Seng, down 1.33% on the day.
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