SHANGHAI, Nov 30 (Reuters) - China's blue-chip stock index slid on Wednesday, snapping a 7-session winning streak, as raw material stocks tanked after commodity prices were hit by fears of a liquidity squeeze.
The blue-chip CSI300 index fell 0.7 percent, to 3,538.00 points, while the Shanghai Composite Index lost 1 percent to 3,250.03 points.
For the month, CSI300 was up 6.0 percent, while SSEC was up 4.8 percent, in their biggest monthly advance since March.
Echoing the recent strong rally, a Reuters poll showed Chinese fund managers have raised suggested equity exposure for the next three months to the highest since June.
However, analysts said moves by China's central bank in recent days to shore up a sliding yuan were sucking additional liquidity from the system and raising fears of a cash crunch.
Coking coal futures and construction product steel rebar tumbled, while Shanghai lead and zinc led steep falls across base metals.
Yuan borrowing costs surged after the central bank pulled funds from the financial system, making investments in commodities and equities more expensive and less attractive.
Shares in big-cap industry leaders took a breather, while investors were also selling resources shares on a broad retreat in futures market after major commodity exchanges introduced further measures to tame wild price moves.
Index heavyweights material and energy stocks slumped, dampening sentiment in the market.
Most sectors lost ground. Properties were among the few sectors making gains, thanks to China Evergrande further boosting its stake in China Vanke . (Reporting by Luoyan Liu and John Ruwitch; Editing by Shri Navaratnam)