Press "Enter" to skip to content

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 their worst performance for the same period since 2008.

The Shanghai Composite Index tumbled 3.7 per cent to 2716, the biggest drop since 19th June. The Shenzhen Component Index and the Chinext index are plunging 4 per cent.

Losses are seen across the board, led by large-cap blue-chip stocks are leading the selloff. The SSE 50 index which tracks the biggest 50 stocks listed on the Shanghai Stock Exchange plunged 4.6 per cent. Meanwhile, the CSI 300 index tracking the biggest 300 stocks listed on the two stock exchanges in Shanghai and Shenzhen slumped 4.3 per cent.

Overseas funds are fleeing from the mainland market today, with net fund outflows through the stock link between Hong Kong and the mainland hitting 9.6 billion yuan, the second highest so far this year, after 9.66 net outflows recorded in 6th February.

The selloff 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

The price restriction on IPO debut fuels speculati... A senior official of China's securities regulator recently said that the current 44 per cent cap on share prices changes on the debut amplifies price ...
Tencent lower for eighth straight day, market cap ... Chinese tech giant Tencent extended losses by 1.7 per cent on Tuesday to close at HK$293.8 after breaking through the key psychological line of HK$300...
China and Germany to bring financial relations ... China and Germany plan to open their markets wider to each other’s banks and insurers to bring the financial cooperation “to a new high”. The two s...
Chinese stocks had the worst year in a decade Chinese stocks end the last trading day of this year in the gaining territory, but still down sharply for the whole year, making it one of the worst y...
China unveils listing and trading rules for Techno... China has published listing and trading rules for a Nasdaq-style Technology Innovation Board in the Shanghai Stock Exchange, potentially competing wit...

Top