(AP) — SHANGHAI - Chinese shares fell for a third day Friday, ending the week down 4.4 percent, on concerns of a possible credit contraction.
The benchmark Shanghai Composite Index lost 95.64 points, or 2.9 percent, to close at 3260.69. The Shenzhen Composite Index for China's smaller second exchange dropped 3.4 percent to 1087.23.
Investors were unnerved by the central bank's announcement Wednesday that it would "actively fine-tune policy" as economic conditions develop. Surging bank lending to support Beijing's stimulus has helped to push the Shanghai index up by more than 80 percent this year.
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"Although the central bank didn't say it will alter the direction of the monetary policies, investors are uneasy about it," said Zheng Min, an analyst for Guoyuan Securities in Shanghai.
Industrial & Commercial Bank of China Ltd., the country's biggest commercial lender, shed 1.6 percent to 5.1 yuan. Bank of China Ltd. waned 2.5 percent to 4.38 yuan, while China Construction Bank Ltd. withered 2.9 percent to 6.11 yuan.
Real estate shares fell after an announcement that the southern business center of Shenzhen will impose China's first property tax in an experiment that could be adopted nationwide.
China Vanke Ltd., the country's biggest developer, declined by 2.5 percent to 10.82 yuan, while rival Poly Real Estate Group, gave up 2.8 percent to 26.42 yuan.
Steelmakers fell further after gaining in previous sessions. Baoshan Iron and Steel Co., China's biggest steelmaker, shrank 3.5 percent to 8.76 yuan, while Tangshan Iron & Steel Co. lost 5.9 percent to 9.46 yuan.
In currency markets, the yuan strengthened to 6.8321 to the U.S. dollar, up from Thursday's close of 6.8382.
