Equities slump as growth concerns persist
Share prices slumped on Wednesday to the lowest since the market rout in August as the better-thanexpected trade data failed to boost investor sentiment.
The benchmark Shanghai Composite Index tumbled by 2.42 percent to close at 2,949.6 points. It was the first time that the index closed below the psychologically sensitive level of 3,000 points since August. The smaller Shenzhen Component Index retreated by 3.06 percent to close at 9,978.82 points while the startup index ChiNext that tracks high-tech and innovative companies dived by 4.09 percent.
The sell-off intensified after 2:30 pm, with stocks of shipbuilders, construction material and aircraft manufacturers leading the decline.
Following Wednesday’s crash, China’s stock market watchdog dished out an immediate statement, reiterating that the highly anticipated IPO reform based on registration will not take effect from March 1, 2016.
Instead, the reform will kick off from March 1, and it is supposed to wrap up in two years, according to the statement.