国际英语新闻：China stocks ease 0.7% as tax-cut euphoria fades

BEIJING, April 25 (Xinhua) -- Chinese shares ended the week on a lower note, closing down 0.7 percent on Friday after seesaw trade, just a day after the market soared on share-trading tax cuts.

    The benchmark Shanghai Composite Index rose above 3,600 points during the afternoon before turning lower to end at 3,557.75 points. The weak performance of market heavyweights was the main drag on performance. The Shenzhen Component Index gained 1.47 percent to 13,104.95 points.

Investors are waching stocks information in front of an electronic board showing stock information at a brokerage house in Hefei, April 25, 2008. Chinese shares ended the week on a lower note, closing down 0.7 percent on Friday after seesaw trade, just a day after the market soared on share-trading tax cuts.

Aggregate turnover was little changed from Thursday at 260.46 billion yuan (37.21 billion U.S. dollars).

    PetroChina, the largest component of the Shanghai index, dropped 3.09 percent to 17.59 yuan.

    Shares of listed brokerages continued their gains, many rising by the daily 10-percent limit, boosted by news reports that the government would introduce margin financing and short-selling, which would allow investors to borrow from brokerage firms for their trades.

    Banking shares fell across the board. Industrial and Commercial Bank of China, the country's largest lender, fell 4.7 percent to 6.49 yuan. Bank of Communications slid 3.53 percent to 10.66 yuan.

    The reported moves would attract more funds from bank deposits into the equity market and boost trading, analysts said.

    On Thursday, the announcement that stamp tax rates would be cut drove the key Shanghai index 9.29 percent higher to its largest gain since Oct. 23, 2001.