China Stocks Sink on Trade Data to Extend Biggest Global Tumble
- Exports fell 1.8%, while imports dropped for 18th month
- People's Daily warns nation must face up to bad-loan risks
China's Exports and Reserves Show Stabilization
China’s stocks capped their biggest two-day loss since late February, led by commodity producers and industrial companies, as trade data disappointed and the People’s Daily warned about the country’s rising debt in a front-page article.
The Shanghai Composite Index tumbled 2.8 percent at the close, extending Friday’s 2.8 percent retreat. A gauge of raw material companies declined to its lowest level in more than two months. The nation’s exports fell 1.8 percent in dollar terms in April, data released over the weekend showed, while imports dropped for the 18th month in a row. China needs to face up to its nonperforming loans and put deleveraging ahead of short-term growth, the leading Communist Party mouthpiece said.