Press "Enter" to skip to content

Chinese small stocks hit four-year low, overseas funds flowing out for the 2nd straight day

Pessimism still grasp the stock market in China and overseas investors are rushing away for the second day in a row.

The Shanghai Composite index edged up about 0.2 per cent to close at 2721 on Tuesday after slumping almost 4 per cent one day earlier.

The Chinext index, which tracks small-cap stocks, most in technology sectors, lost 0.6 per cent after dropping more than 1 per cent intraday to hit a new low in four years.

Net fund outflows through the stock link between Hong Kong and the mainland 2.732 billion yuan after 9.6 billion yuan flowing out on Monday, which was the second highest amount so far this year.

The weak performance comes in spite of the move by the People’s Bank of China (PBOC) to cut the amount of cash lenders must hold as reserves  by 1 percentage point on Sunday to release up to 750 billion additional liquidity.

However, the central bank’s move was obviously not enough to offset a barrage of negative news coming in during the week-long National Day holiday, including weak manufacturing data, a close call between a US and a Chinese destroyer, a North American trade deal that’s set to sideline China, accusations of election meddling from US Vice President Mike Pence and a Bloomberg News report that the country spied on US companies.

 

 

Related Post

Retail investors give Meituan Dianping IPO the col... Chinese online food delivery-to-ticketing services platform Meituan Dianping's initial public offering was given the cold shoulder by most of Hong Kon...
China rushing to ease risks of pledged shares China is making more moves to ease the risks arising from possible forced selling of shares pledged by founders and major stakeholders of listed compa...
China Tower Extends Lacklustre IPO Trend in Hong K... China Tower made its trading debut in Hong Kong on Wednesday and the stock ended unchanged from its IPO price, extending the trend of lacklustre debut...
Two funds of China’s “national team... The latest earnings reports show that two funds of China's "national team", part of the force that rescued the country's stock market in the crash in ...
Chinese stocks see biggest selloff in three months Chinese stocks post the worst performance in three months on the first trading day after the week-long Golden Week holiday, putting them on course for...

Top