Equities dip on policy concerns

SHANGHAI: Chinese equities declined yesterday, making the benchmark index the world's worst performer, on concern the government would step up measures to prevent asset bubbles.

Industrial and Commercial Bank of China Ltd (ICBC) led declines among banks after central bank Governor Zhou Xiaochuan said reserve requirements for lenders remain an important tool. Poly Real Estate Group Co, the second-largest developer by market value, slid 2.8 percent.

"The policy front is still the biggest risk to the property industry," said Zheng Tuo, president of Good Hope Equity Investment Co in Shanghai. "Given the importance of property to China's economy, investors are wondering if economic growth may be impacted next year."