China stocks fall further as CSRC revises rules
China stocks fell over 1 percent on Friday, making a fifth straight session of losses, dragged by financials after the banking and insurance regulator pushed for more credit support to private companies.
Tracking losses in broader Asian markets, Hong Kong stocks fared worse than those in the mainland.
The Hang Seng Index was down 2.4 percent at 25,601.15. Chinese H-shares listed in Hong Kong fell 2.7 percent to 10,419.5.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.5 percent, while Japan’s Nikkei index was down 0.9 percent, after the Fed’s statement overnight showed that the central bank appeared poised to deliver another interest rate hike next month.
On Friday, US stocks fell with shares of technology, energy and industrial companies taking a hit.
As investors shunned growth stocks, the S&P technology index fell 1.76 percent, led by Apple Inc’s 2.4 percent slide and semiconductor stocks tumbling 2.21 percent.
The yuan was quoted at 6.9469 per US dollar on Friday, dropping 0.19 percent, weaker than the previous close of 6.934.
The Shanghai stock index was down 2.8 percent last week, while China’s H-share index was down 2.5 percent.
China’s securities regulator published revised rules on Friday that would allow listed companies to issue additional shares more frequently, and for broader use.
The China Securities Regulatory Commission said at a press conference that money raised via private share placement can be fully used to replenish operating capital and repay debts, according to the Xinhua News Agency.
Meanwhile, qualified companies are now allowed to sell additional shares six months after the previous round of financing, compared with a minimum period of 18 months previously.