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Mainland plays dive on Nato backlash

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SCMP Reporter

Mainland shares saw one of their biggest daily falls this year yesterday, triggered by Beijing's propaganda war against the Nato bombing of its Belgrade embassy at the weekend.

The Shanghai A-Share Index dived 4.32 per cent to 1,139.566 points, the lowest level in more than three months.

This dragged down the B shares, which left the B-Share Index 7.34 per cent weaker at 28.107 points.

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The trend was mirrored in Shenzhen, where the A-Share Index lost 4.6 per cent to 343.61 points, also the lowest since early February.

The B-Share Index dived 7.25 per cent to 53.07 points.

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'B shares' sharp declines were mainly in response to the drops in A shares,' a China Guotai analyst said.

Analysts said while the weekend Kosovo crisis was a trigger, shares had, in reality, been falling in the past 18 months primarily because of poor corporate results.

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