SHANGHAI stocks dropped this morning as investment activity in China remained weak this month.

The benchmark Shanghai Composite Index fell 0.5 percent, or 12.34 points, to 2,360.97. Turnover stood at 46 billion yuan (US$7.3 billion) in the morning session.

China's four biggest banks, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of China, granted a mere 34 billion yuan in new loans in the first three weeks of May, indicating credit demand is weak, 21st Century Business Herald reported today, citing an unnamed source.

Industrial and Commercial Bank of China, the nation's largest lender, shed 0.5 percent to 4.21 yuan while China Construction Bank fell 0.7 percent to 4.51 yuan.

Gold stocks shrank after gold futures for June delivery lost 0.8 percent, or US$12.1, to US$1,576.6 an ounce on the New York Mercantile Exchange.

Zhongjin Gold Corp dropped 2.8 percent to 22.24 yuan. Shandong Gold Mining Co fell 2.4 percent to 33.53 yuan. Zijin Mining Group Co, the nation's largest gold producer, lost 2 percent to 4.06 yuan.

Brokerages rose against the falling index. Southwest Securities surged 5.3 percent to 11.39 yuan. Citic Securities, the biggest listed brokerage, added 0.3 percent to 13.34 yuan.

Property developers also advanced. Gemdale Corporation gained 4.1 percent to 6.67 yuan. Zhejiang Guangsha Co rose 1.2 percent to 5.02 yuan.

Source:shanghaidaily