SHANGHAI, June 11 (Reuters) - China stocks ended lower on
Friday, dragged down by liquor and financial firms, and posted a
second straight weekly loss, while data showed the country's
broader credit growth slowed in May.
** The blue-chip CSI300 index fell 0.9% to
5,224.70, while the Shanghai Composite Index shed 0.6%
** The CSI300 liquor index slumped 3.3% on
persistent worries over lofty valuations, while the CSI300
financials index slid 1.1%.
** Jiangsu Yanghe Brewery, Beijing Shunxin
Agriculture and Xinghuacun Fen Wine
dropped between 1.1% and 10.0%.
** For the week, the CSI300 declined 1.1%, while the SSEC
** Many analysts and traders said there was a lack of
momentum for a strong rally as they expect Beijing to maintain
stable liquidity and a tight monetary stance.
** China's central bank governor said inflation was "under
control" and monetary policy would be kept steady, a day after
inflation concerns were fanned by data showing the fastest rise
in factory-gate prices in 12 years.
** "China's Jan-May bond issuance fell short of
expectations, indicating acceleration of issuance from June,
which could decrease money flows into the equities market," said
Luo Huibiao, an investment advisor from Guosen Securities.
** Caution also prevailed ahead of the three-day Dragon
Festival holiday, which starts from Saturday.
** China's new bank loans unexpectedly rose in May from the
previous month, but broader credit growth continued to slow as
the central bank seeks to contain rising debt.
** Top Chinese leaders have repeatedly vowed to avoid any
sharp policy turns, keeping borrowing costs low and telling
banks to maintain support for small firms, while being more
watchful about extending credit to hot areas of the economy.
** However, shares in China's Zhejiang-based listed firms
jumped, as investors cheered Beijing's latest policy support for
(Reporting by Luoyan Liu and Andrew Galbraith; Editing by