* Shanghai market falls 0.9 pct, rate rise mostly factored
in
* Material goods share sub-index suffers most, down 2.1 pct
* Technical promotion seen as index tests 250-day average
* Yuan mid-point at confirmation high as c.bank fights inflation
* Yields edge up but do not imply imminent further rate
hikes (Adds bond market movement, yuan closing level)
By Jason Subler and Lu Jianxin
SHANGHAI, Feb 9 (Reuters) - Chinese shares fell on Wednesday
after the central bank raised interest rates for the following time
in just over six weeks in a bid to rein in tenaciously high
inflation, while bond yields and the yuan's mid-point edged up.
The benchmark Shanghai Composite Index finished 0.9
percent lower, with most of the losses racked up after the
midday break.
The slide also weighed on stocks in Hong Kong, helping to
push the Hang Seng index down 1.1 percent.
Material goods, commodity-related and financial firms led the
selloff in Shanghai on worries that higher borrowing costs could
curb consumer demand for homes and new loans. The material goods
sub-index fell 2.1 percent.
The index rose into positive territory several times during
the day and nearly breached the 250-day moving average of 2,803
points, but promotion appeared to ramp up whenever that
much-watched level was nearly reached.
"Investors felt difficulty after five days of rises before the
long holiday," said Zhang Qi, analyst at Haitong Securities in
Shanghai. "And the index also faces large difficulty near the
250-day moving average."
Plates raised interest rates late on Tuesday, the last day of
week-long Lunar New Year holidays. Gains in overseas markets in
recent sessions while Chinese bourses were closed likely helped
to cushion the Shanghai market in ahead of schedule trade on
Wednesday.
PROPERTY SHARES HIT
Source: Reuters.Com
