Arab Today, arab today shanghai stocks plunge 642 by close
Last Updated : GMT 02:18:28
Arab Today, arab today
Arab Today, arab today

Shanghai stocks plunge 6.42% by close

Arab Today, arab today

Arab Today, arab today Shanghai stocks plunge 6.42% by close

Shanghai stocks
Shanghai - AFP

Chinese shares slumped more than six percent Friday afternoon as tight market liquidity caused by new share issues triggered a large sell-off, dealers said.

The benchmark Shanghai Composite Index dived 6.42 percent, or 307.00 points, to 4,478.36 on turnover of 685.5 billion yuan ($112.2 billion). The index lost 13.32 percent over the week.

The market loss was the worst since May 28, when Shanghai dived 6.50 percent.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, sank 5.88 percent, or 171.42 points, to 2,742.18 on turnover of 601.2 billion yuan. It fell 12.69 percent for the week.

China's market regulator last week tightened some rules for margin trading, through which investors borrow funds to trade stocks, and prohibited dealers from raising funds outside of the margin trading channel to trade stocks.

"China stocks’ correction is mainly triggered by concern about high valuations of smaller companies and the regulator's crackdown on margin debts, particularly non-compliant ones," Zhang Haitong, Shanghai-based chief strategist at Jinkuang Investment Management, told Bloomberg News.

"We may be close to the end of the correction as the tone of loose monetary policies isn't changed. We may see cuts in interest rates or reserve requirement ratios again as the economy is still sluggish," Zhang said.

The Shanghai market has paired last week’s gains as investors grew cautious after it hit the 5,000-point level earlier in June.

A total of 11 companies issued new shares for investor subscription, which usually drains funds away from the existing market. The regulator approved 24 initial public offerings earlier this month.

"The new share offers are part of the direct causes for the market selloff today and it is very likely this is a mid-term market adjustment," Haitong Securities analyst Zhang Qi told AFP.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today shanghai stocks plunge 642 by close Arab Today, arab today shanghai stocks plunge 642 by close

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today shanghai stocks plunge 642 by close Arab Today, arab today shanghai stocks plunge 642 by close

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday