China shares lower in morning trade

SHANGHAI: Chinese shares fell 0.28 percent in early trade Monday on a knee-jerk reaction after the central bank told banks to set aside more money in reserves, dealers said.

The Shanghai Composite Index, which covers both A and B shares, was down 7.99 points at 2,891.80.

The People's Bank of China said Friday after the market closed that the reserve requirement ratio would be raised by 50 basis points from Thursday, the second such hike this year, as inflation remains in the spotlight.

The Shanghai A-share index fell 0.28 percent, or 8.37 points, to 3,027.93 while the Shenzhen A-share index lost 0.44 percent, or 5.83 points, to 1,326.45.