HK, China Shares FA

China shares snap five-session rally HONG KONG/SHANGHAI: Shares in Hong Kong and Shanghai fell on Friday, tracking losses in other Asian markets, while Chinese lenders dropped on reports Beijing may adjust their reserve requirements.

In China, the Shanghai Composite Index ended down 0.37 per cent at 3,308.346 points, snapping a five-session winning streak. For the week, the index rose 3.8 per cent, its third consecutive weekly rise.

The benchmark Hang Seng Index closed down 0.83 per cent, or 187.32 points, at 22,455.84, the lowest in more than a week. The index was down 0.43 per cent for the week, reversing a 3.3 per cent gain in the previous week.

Turnover fell to HK$60.5 billion ($7.8 billion), the lowest since November 4, from HK$69.3 billion on Thursday.

"People are staying on the sidelines right now, after yesterday's correction in the US," said Alex Wong, director at Ample Finance Group. "We will probably continue to trade in a narrow range until next week."

"In early December, we will have a new set of data from the US and China that could provide direction in the market."

The market is consolidating after the index hit 23,000 points twice this week, a level not seen since July 2008.

Chinese lenders ICBC slid 1.46 per cent and Bank of Communications slipped 1.34 per cent. In Shanghai, Bank of China shed 0.69 per cent to 4.34 yuan, while ICBC lost 1.26 per cent to 5.48 yuan.

China may adjust bank reserve requirement ratios next year as the country's economy steadies, a former Chinese central bank official was quoted as saying in the Shanghai Securities News.