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Banking shares head south as govt tightens liquidity tap

By Wang Bo | China Daily | Updated: 2010-01-27 08:02

As concerns grow over whether more fundraising plans may be in the works for Chinese banks, investors may be wondering whether buying bank stocks is still a good bet or not.

Amid a sweeping decline in mainland stocks yesterday, most banks shares continued to fall on worries that the government has begun to enact policies designed to cool down the world's fastest growing economy.

The entire banking sector has undergone several major corrections since the beginning of the year, as rumors circulate about banks' fundraising plans and a government clampdown on lending hammers investor sentiment.

Banking shares head south as govt tightens liquidity tap

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