China stock markets fell sharply Monday, led by securities and Developers on concern central bank may raise lending and deposit rates to cap inflation.
China's benchmark Shanghai Composite Index plunged 196.22 points, or 5.62 percent to 3,296.67 at 3pm.Shenzhen Composite Index,which covers the mainland's smaller stock market ,sank 67.86 points, or 6.30 percent, to 1,009.16.
The People's bank of China chief Zhou Xiaochuan said last Sunday China will stick with 'tight' monetary policy, which considered a sign of raising lending and deposit rates by markets.
Central bank vice governor Liu Shiyu said yesterday the nation's CPI of March estimated 8.3 percent, which adding to the possibility of higher rates.
That attacked Developers and securities which are sensitive about rates changing. China Vanke, the nation's biggest developer, drop the daily cap of 10 percent to 22.92 yuan.Poly Real Estate Group Co, the nation's second-largest developer, also fell the daily cap of 10 percent to 24.30 yuan.
Securities was also tumbled. Citic Securities Co, the nation's largest brokerage, fell 7.70 percent to 52.42,while Haitong Securities losing 8.99 percent to 31.78 yuan.
Banks and insurers were also hit by selling, helping pull the index lower.
Industrial and Commercial Bank of China, the nation's biggest lender, dropped 5.22 percent to 5.81 yuan. China Pacific Insurance (Group) Co, the nation's third-largest insurer, dropped 5.67 percent to 25.61yuan.
The Heavyweights PetroChina, nation's largest oil producer, plunged 3.32 percent to 16.91 yuan, near the initial public offering price of 16.7 yuan.