UPDATE 2-China's shares slide after rate hike but banks rally

Newswire

(Adds midday close, analysts' comment) SHANGHAI, Oct 29 (Reuters) - China's shares fell 0.7 percent on Friday morning after Beijing raised interest rates for the first time in nine years, recovering swiftly from a near-3 percent slide early on thanks to a rally among banks. Heavy losses emerged among stocks in industries such as property, steel, autos and cement -- the same sectors to which Beijing had restricted credit, fearing bubbles forming. The benchmark Shanghai composite index , ...

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