The Mainland China share market finished session steep lower on Monday, 22 February 2021, as concerns grew of a gradual tightening in lending conditions after one-year loan prime rate (LPR) in China was left unchanged at 3.85% and China's potential plans to allow more capital outflows.
At closing bell, the benchmark Shanghai Composite Index declined 1.45%, or 53.72 points, to 3,642.45. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 2.11%, or 51.99 points, to 2,416.67. The blue-chip CSI300 index fell 3.14%, or 181.51 points, to 5,597.33.
The People's Bank of China (PBOC) on Saturday kept on hold their benchmark loan prime rate, which is set by China's largest commercial lenders and uses an official central bank interest rate as its floor. China kept the one-year loan prime rate (LPR) unchanged at 3.85%. The rate has not moved since it dropped to 3.85% in April last year, when cities nationwide went into lockdown in order to stamp out coronavirus outbreaks.