Chinese equities fell from a four-month high as bank shares declined on reports that August lending might not exceed 500 billion yuan, and property developers dropped on concerns that the government would take further steps to cool the property market.

The benchmark Shanghai Composite Index dropped 3.07 points, or 0.11percent to close at 2,695.29. The Shenzhen Component Index rose 40.08 points, or 0.34 percent, to end at 11,722.78.

Combined turnover hit 252.43 billion yuan (37.18 billion U.S. dollars.)

Losers outnumbered gainers by 486 to 367 in Shanghai while gainers outnumbered losers by 637 to 383 in Shenzhen.

Bank shares led the decline Wednesday as investors worried about Chinese banks' August earnings after the Shanghai Securities News reported that new yuan-denominated lending might have fallen for the fifth straight month to be less than 500 billion yuan last month.

Industrial and Commercial Bank of China, the country's biggest lender, fell 0.97 percent to 4.09 yuan per share, while Bank of China, the third largest, dropped 0.88 percent to 3.37 yuan per share.

Property shares posted widespread losses Wednesday after the 21st Century Business Herald reported the government would step up efforts to curb rising housing prices.

The government could order banks to stop issuing loans to developers, the report said.

China Vanke Co., the country's biggest developer, fell 2.39 percent to 8.57 yuan per share while Gemdale Co. retreated 1.96 percent to 6.52 yuan per share.

Stocks of natural gas companies rose Wednesday after media reports said local governments might raise the price of household gas.

Chuangchun Gas Co. rose 3.41 percent to 10.02 yuan while Sichuan Datong Gas Development Co. gained 4.37 percent to 8.6 yuan.

A report carried in the Shanghai Securities News said several cities in the provinces of Shaanxi, Hebei, Jiangsu, Sichuan and Shandong had held public hearings on plans to increase household gas prices.