Chinese Stocks Post Another Big Slump Amid Growth Pessimism
Sep, 15th 03:24
China’s stocks fell for the steepest two-day loss in three weeks amid concern investors will continue to pull funds from the nation’s equities as data show a deepening economic slowdown.
The Shanghai Composite Index dropped 1.1 percent to 3,079.47 at 10:09 a.m. local time, led by material and industrial shares. The net value of mainland equity funds plunged 44 percent last month, while traders withdrew $15 million from the biggest U.S. exchange-traded fund tracking mainland stocks in the five days through Sept. 11.
Yuan positions at the central bank and financial institutions fell by the most on record in August, a sign that policy makers stepped up intervention to support the currency.
Meanwhile the CSI 300 Index declined 1.5 percent. Hong Kong’s Hang Seng China Enterprises Index advanced 0.6 percent. The Hang Seng Index added 0.2 percent.
The Shanghai measure is valued at 11.9 times 12-month projected earnings, compared with the five-year average multiple of 10.3, Bloomberg data show.