Chinese Shares Tumble as Oil Slump Exacerbates Drop on Crackdown
- Shanghai Composite declines for fourth week, worst run of 2017
- Hong Kong-traded stocks lead Asian losses as crude breaks $45
Oil Extends Slump Below $45 a Barrel
Chinese stocks sank in Shanghai and Hong Kong as concern over Beijing’s efforts to reduce leverage in the financial system persisted and as a selloff in commodities spilled over into equity markets.
The Hang Seng China Enterprises Index led declines in Asia, sliding 1.6 percent at the close local time. Back on the mainland, the Shanghai Composite Index slipped 0.8 percent, taking its drop in the week to 1.6 percent and briefly breaking a key support level of 3,100 points. The gauge has fallen for four straight weeks, its longest run of declines this year. Energy producers slumped as U.S-traded oil slid below $45 a barrel for the first time since November, while materials and industrial companies also dropped.