Economics
Chinese Stocks Slump as Cash Injection Fails to Lift Markets
- Higher borrowing costs, currency volatility weigh on stocks
- Three-month Hibor in Hong Kong jumps to highest since 2009
China Chaos: What Would Stabilize the Markets?
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Chinese stocks tumbled as the central bank’s biggest cash injection in the financial system in three years failed to ease concern that the nation’s economic slowdown will deepen.
The Shanghai Composite Index slid 3.2 percent to 2,880.48 at the close. Hong Kong’s Hang Seng China Enterprises dropped 2.2 percent to the lowest level since March 2009. Hong Kong stocks fell below the value of their net assets for the first time since 1998. Property developers led declines on concern higher borrowing costs will crimp earnings after the three-month Hong Kong Inter-Bank Offered Rate climbed to the highest level in more than six years.