Chinese equities were mixed Friday with the key Shanghai stock index slightly lower, as banking stocks and property developers fell on speculation the government will implement more tightening measures because of bad loans.

The benchmark Shanghai Composite Index dipped 0.38 points, or 0.01 percent, to close at 2,655.39. The Shenzhen Component Index inched up 1.94 points, or 0.02 percent, to end at 11,467.09.

Combined turnover expanded to 289.03 billion yuan (42.5 billion U.S. dollars) from 277.83 billion yuan the previous trading day.

Gainers outnumbered losers 476 to 393 in Shanghai and 648 to 382 in Shenzhen.

Banking shares declined after the China Securities Journal reported Friday the country’s four state-owned lenders reported an increase in special-mentioned loans, one level above non-performing loans, in the second quarter of the year.

In the second quarter of the year, special-mentioned loans increased 61.49 billion yuan from the previous quarter at the four lenders — the Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, and Bank of Communications — the newspaper reported, citing unnamed source.

China classifies loans of commercial banks into five levels according to their inherent risk — pass, special-mentioned, substandard, doubtful and loss. The substandard, doubtful and loss loans are categorized as non-performing loans.

Bank of Communications dropped 0.83 percent to 5.98 yuan while shares of Bank of China fell 0.59 percent to 3.35 yuan. China Citic Bank declined 1.06 percent to 5.62 yuan.

Property developer stocks also fell as investors worried about more tightening measures amid reports the National Bureau of Statistics will inspect housing vacancy rates in some cities.

China Vanke, the country’s largest listed property developer by market value, inched down 0.82 percent to 8.5 yuan. Poly Real Estate Group Co., the country’s second-largest developer, shed 0.51 percent to close at 11.77 yuan.

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