Liquidity crunch woes hurt index

Shanghai stocks fell yesterday from a three-week high on concerns over a liquidity crunch at the year-end.

The Shanghai Composite Index shed 0.13 percent to 2,029.24 points yesterday.

Total new lending may be as low as 420 billion yuan (US$79.6 billion) in November, down from October's 505 billion yuan, according to the 21st Century Business Herald.

"The performance of the A-share market is lower than expected this year," Guotai Junan Securities said yesterday. "The robust bond market has grown at the expense of the stock market's liquidity, especially when bank credit supply is sluggish."

Kweichow Moutai Co, the largest maker of baijiu liquor, lost 1.2 percent to 194 yuan. Moutai has fallen 26 percent since reaching a record high on July 13. Liquor makers have tumbled after the nation's quality watchdog found excessive levels of plasticizer in drinks made by JiuGui Liquor Co.