China shares fall on credit contraction jitters

Chinese shares fell Wednesday for the first time in five sessions on concerns about a possible liquidity contraction, led by banks and real estate.

The benchmark Shanghai Composite Index lost 95.02 points, or 2.9 percent, to close at 3,151.85. The Shenzhen Composite Index for China's smaller second exchange dived 3.7 percent to 1,191.75.

Sentiment was dampened by a newspaper report that some banks were ordered to cease lending for the rest of January after exceeding credit limits. The gloomy mood remained even though the top bank regulator denied the report.

"It makes no sense to look at what the regulators say instead of what they do," …