China Vanke Co. (000002) and Poly Real Estate Group Co. (600048) fell by the daily limit on Chinese exchanges after the country's central bank told commercial banks to set aside more deposits as reserves, reducing funds available for lending.
Vanke shares fell as much as 10 percent to 17.70 yuan in Shenzhen, and Poly slid 10 percent to 15.94 yuan in Shanghai. The companies are China's two largest real estate developers by market value.
The People's Bank of China ordered banks June 7 to set aside more money as part of efforts to cool inflation in the world's fastest-growing major economy. Chinese banks must put aside a record 17 percent of deposits as reserves starting June 15, which rises to 17.5 percent from June 25, according to the central bank.
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