Shanghai---Chinese shares fell more than four percent in early afternoon trading on Thursday after a securities firm curbed margin trading in technology companies, dealers said.
The benchmark Shanghai Composite Index slid 4.57 percent, or 224.31 points, to 4,685.67, briefly falling more than five percent at one point before recovering.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 5.38 percent, or 163.60 points, to 2,877.81.
Golden Sun Securities on Thursday excluded stocks listed on the technology-rich ChiNext index from its list of shares eligible for margin trading -- through which investors borrow money to trade stocks -- according to Bloomberg News.
"The move highlights the risks to investors," Wei Wei, an analyst at West China Securities, told Bloomberg.
"More brokerages may follow. That would hurt market sentiment significantly as lots of investors have ChiNext stocks as their main holdings."
AFP
