HONG KONG, May 3, 2010 (AFP) - Shares in Hong Kong-listed Chinese banks and real estate companies fell on Monday after Beijing announced fresh measures to rein in lending and avoid a property bubble on the mainland.

The People's Bank of China (PBoC) announced Sunday that the minimum amount of money banks must keep in reserve and not use for lending would be hiked by 50 basis points from May 10.

The increase is the third since the beginning of the year and reflects China's growing concerns that soaring prices caused by speculation could lead to overheating in the wider economy.

At the close of Hong Kong trade China Construction Bank fell 1.56 percent to 6.32 Hong Kong dollars (0.81 US), Industrial and Commercial Bank of China lost 1.56 percent at 5.68 dollars and Bank of China gave up 1.72 percent to 4.01.

Among developers China Resources Land dived 5.11 percent to 13.74 dollars, China Overseas fell 3.77 percent to 14.80, and Sino-Ocean Land slipped 3.63 percent to 5.84.

The city's Hang Seng Index was 1.41 percent lower.

However Qu Hongbin, co-head of Asian Economics Research at HSBC in Hong Kong, said China's move to hike the reserve ratio was in line with expectations.

"Despite a recent slowdown in new lending, loan growth still stays above 22 percent year-on-year, well above the (central bank's) whole year target of 17 percent," he said in a research report.

"This calls for the (central bank) to continue to tighten its policy either through reserve ratio hikes, (central bank) bill issuance and lending curbs or price mechanism."

HSBC said it expected the central bank to lift the reserve ratio by another 100-150 basis points in the coming quarters.

The hike, which excludes rural banks, is part of government efforts to control an explosion in new lending that began last year and has raised fears of inflation and a possible rash of bad loans that could stall economic growth.

Beijing has set a loan target of 7.5 trillion yuan this year, much lower than the 9.6 trillion yuan in 2009 which came as banks heeded government calls to help boost the economy during the global crisis.

Aside from raising bank reserve ratios, Beijing has also boosted interest rates on benchmark three-month and one-year Treasury bills.

Other measures it has introduced to cool the property sector include tighter restrictions on advance sales of new developments, new curbs on loans for third-home purchases and a hike in the minimum down payment for second homes.