American shares of Chinese stocks are trading lower following the decision of China’s central bank to tighten credit, upping the amount of reserves banks are required to maintain.
All but 10 of the 80 Chinese stocks on the Bank of New York-Mellon ADR index were fell in early afternoon trading. American Depositary Receipts, are securities that make it possible for American investors to trade in the overseas market.
For the first time since August, The People's Bank of China increased interest rates on one-year bills, perhaps a reaction to the growing inflation in the nation’s economy.
China's leading search engine, Baidu.com was among the hardest hit, slipping $10.35, or 2.6 percent, to $390.22.
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