China shares slump as in­vestor con­cerns linger

Global Times US Edition - - BIZMARKETS -

Stocks in China fell on Tues­day af­ter the coun­try’s blue-chip in­dex posted its strong­est rally in nearly three years on Mon­day, as in­vestor con­cerns about the econ­omy and risks posed by shares pledged for loans con­tin­ued to ham­per sen­ti­ment.

The bench­mark Shang­hai Com­pos­ite In­dex was down 2.26 per­cent, end­ing at 2,594.83 points. The Shen­zhen Com­po­nent In­dex closed 2.24 per­cent lower at 7,574.99 points.

China’s blue-chip CSI300 in­dex was down 2.66 per­cent to close at 3,183.43 points.

“The econ­omy has yet to see im­prove­ment at the mar­gins, so the sig­nif­i­cant re­bound in Ashares on Fri­day and Mon­day was mainly driven by im­proved in­vestor risk sen­ti­ment,” an­a­lysts at China For­tune Se­cu­ri­ties said in a note.

“Af­ter two days of let­ting (neg­a­tive) sen­ti­ment drain off, prices will slowly re­turn to rea­son­able lev­els. Find­ing a bot­tom is still the fun­da­men­tal theme,” the note said.

De­spite a broader weak­ness, shares in se­cu­ri­ties firms con­tin­ued to rise as in­vestors ex­pect sup­port from reg­u­la­tors to ben­e­fit bro­ker­ages.

The Hang Seng In­dex was sharply down 3.08 per­cent at 25,346.551.

So far this year, the Shang­hai stock in­dex is down 19.72 per­cent, while China’s H-share in­dex has lost 10.4 per­cent.

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