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Chinese stocks tumbled amid global selloff

Chinese stocks see a selloff on Thursday after US stocks plunged overnight. The Shanghai Composite slumped 5.2 per cent to close at 2583, breaking through the four-year suppot level of 2638 and lost 2600 mark, to a new low in four years. It’s the biggest one-day drop since February 2016.

The Shenzhen Component index and the Chinext tumbled 6 per cent and 6.3 per cent respectively, the biggest one day-day in years.

More than 1300 stocks tumbled by the daily limit of 10 per cent. More than 1700 stocks slumped by more than 9 per cent. Losses are seen across the board, led by stocks of computer and telecommunication companies. Only 76 stocks managed to rise on the day.

Overseas funds flowed out for the fourth straight day, net fund outflows through the stock link between Hong Kong and the mainland amounting to 3.5 billion yuan.

While stocks are plunging, China’s 10-year treasury futures climbed by 0.4 per cent, the biggest one-day gain in four months, driven by heightened risk aversion.

The yuan’s weakness continues. The offshore yuan (CNH) has been testing 6.9/USD mark, hitting 6.9425 at one point.