China stock market crash; biggest one-day drop since 2008

Shanghai China

Shanghai China

China stocks suffered their biggest one-day percentage drop in more than six and a half years, dragged down by record tumbles in financial stocks as authorities battled excessive market speculation.

Regulators cracked down on margin trading, which has been blamed for fuelling a wave of speculation over the past three months.

Bank stocks were hit after the banking regulator issued draft rules to tighten supervision of entrusted loans, a kind of shadow banking.

The banks sub-index plummeted 9.97 per cent and the financial sub-index sank 9.62 per cent.

All China CSI300 stock index futures were down at least 10 per cent, except the September index which dove 12 per cent.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 7.7 per cent, to 3,355.16. The Shanghai Composite Index also lost 7.7 per cent, to 3,116.35 points.

The falls were the biggest for both indexes since June 10, 2008.

Among the most active stocks in Shanghai were Bank of China , down 10.0 per cent to 4.48 yuan; Agriculture Bank of China, down 9.9 per cent to 3.55 yuan and ICBC , down 9.9 per cent to 4.64 yuan.

In Shenzhen, BOE Technology , down 8.5 per cent to 3.01 yuan; TCL Corp, down 7.7 per cent to 3.71 yuan and Guosen Securities, down 10.0 per cent to 21.31 yuan were among the most actively traded.

Foreign investment flowing into Shanghai from Hong Kong through the mutual market access pilot programme took up -0.33 billion yuan of the 13 billion yuan daily quota.

Total volume of A shares traded in Shanghai was 40.0 billion shares, while Shenzhen volume was 19.5 billion shares.

Source: Irish Times – China stocks suffer biggest one-day tumble since June 2008


Categories: Finance & Economy

Tags: , , ,

4 replies

  1. Was I wrong, again?
    Does the next global financial crisis (this time much more of a real disaster), again, kick in earlier than I predicted?



  1. Three ways the rise of China’s stock market might change the world | China Daily Mail
  2. Hong Kong and China Stocks Decline in Monday Morning Trading  | pundit from another planet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: