THE sharemarket fell sharply yesterday after China announced new measures to curb property speculation. Investors were also concerned after China's services sector data missed expectations, and a 60 Minutes report that said China's rapid growth may have created the biggest housing bubble in history.

The benchmark S&P/ASX 200 closed down 75.6 points, or 1.5 per cent, at 5010.5, with ex-dividend falls stripping about 12 points off the index. Last week, the index hit a 4 1/2-year high of 5112.

Share-trading volume worth $5.2 billion narrowly beat the 20-day moving average of $5.1bn.

China's Shanghai Composite Index was down 3.7 per cent, its biggest one-day fall in 19 months, as a result of Beijing's latest property market tightening measures. "It is a concern in terms of the sustainable demand for raw materials," said Pengana Capital portfolio manager Tim Schroeders. "This isn't new, but highlighting it is going to scare some people in terms of the robustness of China's underlying economic growth and the demand/supply balance for commodities, of which China is a leading consumer."