Chinese stocks fell Monday in thin trading, with investors staying on the sidelines as the country observes a three-day mourning period for victims of last week's earthquake.
The benchmark Shanghai Composite Index fell 0.5 percent, or 19.47 points, to 3,604.76. The Shenzhen Composite Index fell 0.4 percent to 1,120.24.
"Trading incentives are not very strong today, as investors are in a low mood because of the earthquake," said Chen Huiqin at Huatai Securities.
Authorities declared a three-day national period of mourning beginning Monday. Trading on the country's two stock exchanges halted briefly Monday afternoon as the country marked the one-week anniversary of the 7.9 magnitude quake that struck central China's Sichuan province May 12, killing more than 32,000 people and leaving millions homeless.
Cement and pharmaceutical stocks rose on expectations of higher demand from quake-related reconstruction and rescue efforts. Huaxin Cement rose the daily 10 percent limit to 29.59 yuan.
But banks were lower, with a hike in the required reserve ratio due to take effect Tuesday.
Shanghai Pudong Development Bank fell 1.3 percent to 30.22 yuan. Bank of China fell 0.8 percent to 4.92 yuan.
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