Economics
China Stocks Plunge as State Support Fails to Revive Confidence
Turmoil in Chinese Markets as Stocks Plummet
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China’s benchmark stock index tumbled to a three-month low as another round of government support measures failed to allay concern that investors who borrowed to buy shares will keep unwinding those trades at a record pace.
The Shanghai Composite Index slid 5.9 percent to 3,507.19 at the close. With at least 1,331 companies halted on mainland exchanges and another 747 falling by the 10 percent daily limit, sellers were locked out of 72 percent of the Chinese market. They turned to everything from government bonds to Hong Kong shares and commodity futures to raise cash, sending China’s one-year note yield up by the most on record and sparking a 5.8 percent loss in the Hang Seng Index.