Exchanges hit by falls for financial, real estate stocks

Declines for financial, real estate and liquor stocks led a fall in stock markets in the Chinese mainland on Monday.

The benchmark Shanghai Composite Index closed down by 21.32 points or 1.05 percent at 2,005.18 points after falling below the 2,000 level in afternoon trading on Monday.

The Shenzhen Component Index fell by 90.68 points or 1.25 percent to close at 7,151.49 points.

Combined turnover on the two bourses on Monday was 113.54 billion yuan ($18.19 billion), down from the previous trading day's 119.46 billion yuan.

The People's Bank of China, the central bank, announced new rules regarding interbank borrowing over the weekend, under which banks will face more strict regulation.

China Minsheng Banking Corp fell by 3.39 percent to 7.42 yuan, and China CITIC Bank Corp slid by 2.78 percent to 4.19 yuan on Monday.

Meanwhile, shares in liquor firm Wuliangye Yibin Co fell by 2.50 percent to 16.40 yuan after the company cut the retail prices for its products by more than 30 percent. Premium liquor maker Kweichow Moutai Co also declined, falling by 4.63 percent to 7.18 yuan.

The real estate sector was under pressure on Monday after data from the National Bureau of Statistics (NBS) showed on Sunday that there was a rise in the number of cities that saw declining property prices in April. Eight cities experienced a fall in new commercial housing prices month-on-month, double the number in March.

Shares in Poly Real Estate Group Co slid by 0.93 percent to 7.42 yuan, and Gree Real Estate Co declined by 4.84 percent to 8.85 yuan.

On Friday, the China Securities Regulatory Commission unveiled new IPO and refinancing measures for ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen.

ChiNext inched up by 1.90 points or 0.15 percent to 1,228.37 points on Monday.