Chinese shares close lower on Monday
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Chinese shares fell for the eighth consecutive trading day on Monday over concerns of inflation triggered by China's recent severe droughts.
The benchmark Shanghai Composite Index went down 0.13 percent, or 3.59 points, to close at 2,706.36 points.
The Shenzhen Component Index dropped 0.13 percent, or 14.51 points, to 11,478.21.
Combined turnover on the two markets shrank to 122.1 billion yuan (18.84 billion U.S. dollars) from 152.2 billion yuan on the previous trading day.
Losers outnumbered gainers by 731 to 167 in Shanghai and by 863 to 359 in Shenzhen.
Property stocks led the decline. China Vanke Co., the country's largest listed property developer, lost 1.27 percent to hit 7.80 yuan per share. Poly Real Estate Group Co., China's second-largest developer by market value, slumped 3.26 percent to 9.51 yuan per share.
Analysts attributed the decline to worries over inflation triggered by severe droughts in the middle and lower reaches of the Yangtze River.
It will be a huge challenge to get through the drought and stabilize soaring prices, Minsheng Securities analyst Hao Daming said.
Minsheng Securities raised its forecast of May year-on-year CPI growth to 5.4 percent from 5.2 percent, Hao said.
