China's Stock Market Closed At A Five Week Low Of &Nbsp; Affected By Holidays And Tightening Measures.

　　 Chinese stock market Monday's close ended at its lowest point in more than five weeks as investors worried that the Chinese government would take a new round of silver. Industry contraction Measures; this week will usher in a three day public holiday.

The benchmark Shanghai Composite Index closed down 9.98 points, or 0.4%, to 2588.71 points, the lowest closing point since August 12th when it closed at 2575.48. The Shenzhen composite index fell 12.84 points to 1144.28 points, or 1.1%.

The stock index futures contract closed down 0.1% in October 2010 to 2873. The contract is the most active one among the four stock index futures contracts traded in China.

China Stock Index Futures The CSI 300 index is the target. The Shanghai and Shenzhen 300 index closed down 0.4% to 2849.83.

Analysts say the Shanghai Composite Index will probably fluctuate near 2600 points before the Mid Autumn Festival holidays starting on Wednesday and Friday and the 7 National Day Golden Week holidays starting in October 1st.

Wang Weijun, an analyst at Zheshang Securities, said investors were evacuated before the holidays because of the lack of big profits. This is most obvious in metals and rare earth stocks.

Metal stocks led. Jiangxi copper (Jiangxi Copper) fell 3.6% to 30.73 yuan, and China Aluminum (Chalco) fell 1.3% to 9.67 yuan.

Rare earth mining shares also fell. Inner Mongolia Baotou Steel Rare-Earth Group fell 4.2% to 62.90 yuan, while the development of Minmetals (Minmetals Development) fell 4.7% to RMB 20.66 yuan.

Banking stocks were mixed with each other, although the China Securities Daily's report on Monday's current five major state-owned commercial banks' loan provisioning rate reached at least 2.5%, easing market concerns. The worry of the market is that if the China Banking Regulatory Commission (CBRC) decides to implement the loan provision policy, can the five big banks achieve the relevant requirements?

The first financial daily newspaper said last week that the banking regulator will require banks to set aside 2.5% of the total loan amount next year to improve their assets and liabilities.

Bank of Communications rose 1.6% to 5.69 yuan, while Bank of China fell 0.3% to 3.22 yuan.

Li Wenhui, Huatai Securities, said that although the possibility of raising interest rates is decreasing, investors are still reluctant to buy and sell bank shares, which are faced with a lot of uncertainties.

Xia Bin, a consultant and well-known economist of the Central Bank of China, said last Saturday that China should consider the possibility of allowing inflation to rise, rather than raising interest rates slightly, by allowing deposit rates to float freely, because the effect of the latter on curbing price rises is not obvious.

China's banking regulatory authorities also said on Friday that a number of commercial banks have been investigated to increase their deposit rates or adopt other improper means to deposit deposits.