China Stocks Continue Worst Losing Streak Since 2009
Jul, 31st 03:34
China’s stocks fell, with the benchmark index heading for its worst monthly drop in almost six years, as the government struggled to rekindle investor interest amid a $3.5 trillion rout.
The Shanghai Composite Index slid 1.6 percent to 3,647.39 at 9:35 a.m. local time, making it the world’s worst performer this month with a 15 percent slump. Energy stocks led declines before the release of manufacturing data on Saturday.
Turnover on the Shanghai bourse has halved from its peak in June as government’s unprecedented market-support measures have failed to stop the rout. While state funds have been tasked with buying shares, margin traders are cashing out and new equity-account openings are tumbling.
The Shanghai index followed up the rout with a 13 percent rebound from the lows before slumping 9.9 percent this week. The gauge’s 50-day volatility surged to a two-decade high on Wednesday. Thursday’s trading was almost a reverse image of the previous day, when the Shanghai Composite surged in the last hour to close 3.4 percent higher.