China shares slide, money market spike rattles nerves
HONG KONG, July 18 (Reuters) - China shares underperformed Asia on Thursday, with financial and property weakness leading to a second-straight daily loss after an early, and short-lived, spike on China's money market aggravated concerns over the availability of financing for real estate developers.
The CSI300 of the leading Shanghai and Shenzhen A-share listings ended down 1.6 percent at 2,245.3 points. The Shanghai Composite Index slid 1.1 percent. Both broke below recent chart support, pointing at further losses in the near term.
Speculation swirled in China's cash market on Thursday of another credit squeeze after an early spike in the overnight rate ahead of imminent tax payments by banks, although rates soon fell back amid talk of action by major state-owned banks.
Data released on Thursday showed year-on-year gains in June home prices at its strongest this year, although the pace of monthly increase slowed marginally for a third-straight month.
The home price data underlined the challenges faced by Beijing as it reins in excessive credit and shadow banking risks, and tries to restrain real estate prices without dousing one of the bright spots in the economy.
(Reporting by Clement Tan; Editing by Simon Cameron-Moore)