SHANGHAI, Nov 22 (Reuters) - China's key stock index closed down 0.15 percent on Monday, with large gains in sectors such as information technology failing to offset weakness in heavyweight banking shares hit by the latest policy tightening.
An increase in banks' reserve requirements for the second time in two weeks on Friday prompted speculative retail investors to flee bank and property shares, and pile into small cap issues seen as likely to benefit from the government's new five-year plan for developing the economy.
But analysts said there was not enough momentum for the index to rise much above the 250-day moving average, now at around 2,888 points.
The central bank late on Friday raised banks' reserve requirements for the fifth time this year, a measure aimed at reducing the amount of cash in the financial system as part of its fight against inflation.
The Shanghai Composite Index ended at 2,884.4 points after falling 3.2 percent last week. (Reporting by Farah Master; Editing by Jason Subler)