China's Stocks Cap Biggest Selloff Since 2008 on Rescue Doubts
- Shanghai Composite Index declines 12% in month of August
- Brokerages drop on executive detentions, stock-fund orders
China Markets End Volatile August in Continued Slide
China’s stocks fell, capping the benchmark index’s biggest two-month tumble since 2008, amid concern that government intervention to prop up the market will fail.
The Shanghai Composite Index dropped 0.8 percent to 3,205.99 at the close. The gauge lost 12 percent this month after sliding 14 percent in July. The SSE 50 Index of the nation’s biggest stocks rebounded 6.7 percent from its intraday low. Citic Securities Co. slid 5 percent after Xinhua News Agency said executives were detained on suspicion of insider trading and the securities regulator was said to order the brokerage industry to boost its contribution to the nation’s market rescue. Bearish bets in the options market climbed as traders weighed the level of state support before a World War II victory parade this week.