MARKETS-CHINA/SHANGHAI STOCKS China stocks slide as data raises fresh economy worries
Record ID:
141105
MARKETS-CHINA/SHANGHAI STOCKS China stocks slide as data raises fresh economy worries
- Title: MARKETS-CHINA/SHANGHAI STOCKS China stocks slide as data raises fresh economy worries
- Date: 14th September 2015
- Summary: SHANGHAI, CHINA (SEPTEMBER 14, 2015) (REUTERS) INVESTORS INSIDE A STOCK EXCHANGE STOCK INFORMATION ON SCREEN SCREEN SHOWING STOCK INFORMATION VARIOUS OF STOCK INFORMATION ON SCREEN INVESTORS INSIDE A STOCK EXCHANGE STOCK INFORMATION ON SCREEN INVESTOR LOOKING ON VARIOUS OF STOCK INFORMATION ON SCREEN
- Embargoed: 29th September 2015 13:00
- Keywords:
- Topics: General
- Reuters ID: LVA550T6NIFL2MBFUURMM750ARYW
- Aspect Ratio: 16:9
- Story Text: China's stocks fell on Monday (September 14) after data suggesting economic growth was running below the 2015 target level of about 7 percent heightened concerns about the health of the economy.
China's benchmark CSI300 index of the biggest listed stocks in Shanghai and Shenzhen closed down 1.97 percent, while the Shanghai Composite Index dropped 2.67 percent.
China CSI300 stock index futures fell, some by as much as 7 percent, underlining investor scepticism in the stock market's upside potential.
The day saw volumes recover after the prior week's subdued activity, but most of the transactions appeared to be on the sell side. The only bright side appeared to be index-heavyweight banking shares, which traders speculated was largely driven by state-ordered purchases intended to slow the wider market decline.
The economic concerns offset the impact of plans announced at the weekend to reform the bloated state-owned enterprise sector and produce "decisive" results by 2020.
Underscoring the fragility of China's financial markets even after some respite last week, currency traders suspected the central bank intervened to prop up the yuan in onshore markets, which wobbled following a report that net capital outflows in the first quarter of the year were more than $100 billion.
China's stock markets have been on a roller-coaster ride in the past few months, falling close to 40 percent since June and prompting frantic efforts by authorities to restore confidence. Still, at their peak this year, they were up more than 150 percent compared with the lows of 2014.
A surprise devaluation of the yuan in August further roiled markets, reinforcing concerns the economy was weaker than previously thought and forcing China to burn through its foreign exchange reserves to keep the currency stable. - Copyright Holder: REUTERS
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