China's shares closed down more than 1 percent yesterday as selling in bank counters pushed the benchmark stock index down to its lowest level in nearly nine months, brokers said.

The Shanghai composite index, grouping hard-currency B shares for foreigners and yuan-denominated A shares, dropped 1.13 percent to 1,355.335 points, lower than the closing level of 1,357.654 points at the end of last year.

The index fell below even this level on January 7 when it closed at 1,332.061 points. The market then recovered until mid-April, when the impact of severe acute respiratory syndrome began to bite into share prices.

The index's fall has picked up pace since mid-July, battered by a slew of negative factors such as a flood of stock and bond issues as well as government restrictions on bank loans.

The Shenzhen sub-index also fell 37.17 points, or 1.22 percent to close at 3017.42 points yesterday.

(China Daily September 30, 2003)