China | China stocks tumble over 6%, post biggest 1-day loss in a month

China stocks tumble over 6%, post biggest 1-day loss in a month

February 25, 2016 7:03 AM (UTC+8)

 

(From Reuters)

China stocks tumbled more than 6% on Thursday, their biggest one-day loss in a month, as investors booked profits after the market’s recent rebound and awaited policy cues from global leaders gathering in Shanghai for a G20 meeting.

An investor points to an electronic board showing stock information as he speaks to another investor, at a brokerage house in Nanjing, Jiangsu province, China

Traders and analysts cited a confluence of reasons for the slide in addition to profit-taking. These include fears of tighter liquidity in the financial system, worries about the cooling economy and anxiety over looming liberalization of initial public offerings (IPOs), which some investors fear could result in a cash crunch.

The benchmark Shanghai Composite Index .SSEC dropped 6.4% to 2,741.25, its biggest one-day loss since Jan. 26. The blue-chip CSI300 index .CSI300 slumped 6.1% to 2,918.75 points.

The bearish sentiment spilt over into Hong Kong, where the benchmark Hang Seng index.HSI dropped 1.6% and the Hong Kong China Enterprises Index .HSCE was off 2.4%.

China’s stock markets have lost nearly half of their value since early June last year and have struggled to recover despite a massive and unprecedented rescue effort by the government and regulators. Read More

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