22132
Biggest Drop in China Shares Since 2007
World Economy

Biggest Drop in China Shares Since 2007

Chinese shares slid more than 8% on Monday as an unprecedented government rescue plan to prop up valuations ran out of steam, throwing Beijing’s efforts to stave off a deeper crash into doubt.
Major indexes suffered their largest one-day drop since 2007, shattering three weeks of relative calm in China’s volatile stock markets since Beijing unleashed a barrage of support measures to arrest a slump that started in mid-June, Reuters reported.
“The lesson from China’s last equity bubble is that, once sentiment has soured, policy interventions aimed at shoring up prices have only a short-lived effect,” wrote Capital Economics in a research note reacting to the slide.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen tumbled 8.6% to 3,818.73 points, while the Shanghai Composite Index lost 8.5% to 3,725.56 points.
China’s market fluctuation has stoked fears among global investors about the broader health of the world’s second biggest economy, hitting prices of growth-sensitive commodities such as copper, which fell on Monday to not far from a 6-year low.
Stocks fell across the board on Monday, with 2,247 companies falling, leaving only 77 gainers. More than 1,500 shares listed in Shanghai and Shenzhen dived by their 10% daily limit, led by index heavyweights including China Unicom, Bank of Communications and PetroChina.
All traded index futures contracts also fell by their maximum 10% limit, with the exception of a few tracking the large cap SSE50 index, which declined around 9%. Monday’s fall accelerated sharply in the afternoon, long after investors had digested lackluster data on profits at Chinese industrial firms and a disappointing private factory sector survey on Friday.

 

Short URL : http://goo.gl/RAbHoq

You can also read ...

Nigeria Inflation Dips Further
For the eight consecutive months, Nigeria’s inflation rate...
Angola Rating Downgraded
Moody’s Investors Service has Sunday downgraded the long-term...
Modi Assures Economy Strong, in Right Direction
Indian Prime Minister Narendra Modi on Sunday asserted that...
Currently, the total amount of the eurozone’s NPLs is estimated at $1 trillion. However, undercapitalized Italian banks are objecting  to such ECB recommendations.
The European Central Bank is poised to start wrapping up its...
Capital outflows through the banking system have accounted for as much as $27 billion since the crisis.
Unsurprisingly, Qatar has been on the investor radar...
Tanzania Current A/C Deficit Shrinks
Tanzania’s central bank revealed that its current account...
US Household Debt at $12.84t
There’s a scary little statistic buried beneath the US economy...
Every 1% increase in GDP is expected to equal roughly 1.8 million new jobs.
China’s unemployment rate has hit its lowest point in multiple...

Trending

Googleplus