SHANGHAI Dec 15 China stocks slid to one-month
lows on Thursday, after the U.S. Federal Reserve raised interest
rates and signalled a faster-than-expected pace of policy
Strength in small-caps was offset by a tumble in banking
shares, triggered by a dramatic sell-off in bond
markets that raised the spectre of liquidity crunch in the
The blue-chip CSI300 index fell 1.1 percent, to
3,340.43 points, while the Shanghai Composite Index lost
0.7 percent to 3,117.68 points, their lowest levels since early
Several contracts of China's five- and 10-year treasury
futures fell to their daily limit on Thursday, fuelling
liquidity concerns, and raising doubts over the health of banks,
which have large bond holdings.
Further souring sentiment was the yuan, which
fell to its weakest level in more than eight years against a
broadly stronger U.S. dollar on Thursday.
All main sectors lost ground, led by energies
and financials, which slumped their most in six
Shenzhen shares steadied somewhat, as tech stocks
rose following a steep fall.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Richard