By Ye Zhen | 2012-12-11 | ONLINE EDITION
SHANGHAI stocks traded lower in the morning session when data showed domestic banks issued fewer loans than expected last month.
The key Shanghai Composite Index lost 0.41 percent, or 8.52 points, to 2,075.25 points. Turnover was 35.9 billion yuan (US$5.8 billion) by midday.
Chinese lenders extended 522.9 billion yuan of loans in November, down 40 billion yuan from a year earlier, according to data released by the People's Bank of China today. The figure fell short of the market expectation of 550 billion yuan.
Chen Dinghua, analyst with Essence Securities, said the index also fell on market correction after it gained more than 100 points recently.
Most lenders declined due to the weak data. Bank of Communications lost 0.7 percent to 4.45 yuan. China Minsheng Banking Corp fell 0.4 percent to 6.99 yuan. Industrial Bank Co shed 0.5 percent to 14.11 yuan.
Oil-related stocks also declined. China Petroleum and Chemical Co, China's largest oil refiner, dropped 0.9 percent to 6.34 yuan. PetroChina Co, the second largest, slipped 0.7 percent to 8.67 yuan. Offshore Oil Engineering Co skid 0.4 percent to 5.23 yuan.
Kweichow Moutai Co led the gain among distilleries, adding 2.1 percent to 203.03 yuan, after the company said its products met the national standards. Sichuan Tuopai Shede Wine Co inched up 0.4 percent to 21.98 yuan. Shanxi Xinghuacun Fen Wine Factory Co rose 1.4 percent to 35.12 yuan.