SINGAPORE - Singapore shares closed 0.57 percent lower Friday on reports China was planning to curb bank lending, but a rise in Chinese stocks cushioned the decline.

The blue-chip Straits Timex Index retreated 14.71 points to 2,544.86 on volume of 2.53 billion shares worth $1.51 billion.

There were 221 risers against 250 decliners, with 891 issues even.

Shares headed south in the earlier session following media reports China was planning to restrict bank lending, but blue chips pared down losses after the Shanghai stock market held steady and closed 1.69 percent higher.

"This speculation has been around for some time. After the selloff earlier this week, people are getting worried and are looking around for potential negatives," said a dealer at a local brokerage.

Banking stocks tumbled, with DBS down two cents to 12.66 dollars, United Overseas Bank easing 10 cents to 16.26 and Oversea-Chinese Banking Corp giving up eight cents to 7.75.

Singapore Telecom dipped two cents to 3.11 and Singapore Airlines tumbled 16 cents to 12.74.

Oil rig maker Keppel Corp fell 11 cents to 7.48, container shipping firm Neptune Orient Lines was even at 1.62 and publisher Singapore Press Holdings closed one cent lower at 3.54.