Chinese Stocks Tumble Most in 17 Months as Bond Selloff Spreads

  • Government bond yields have climbed to three-year highs
  • State criticism of Moutai shares adds to investor jitters
Bloomberg’s Stephen Engle reports on Thursday’s selloff in Chinese stocks.(Source: Bloomberg)
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Unease rippled through China’s stock market on Thursday, with a gauge of large-cap shares plummeting the most since June last year, as investors fretted a bond rout is getting out of control.

The CSI 300 Index sank 3 percent, with losses steepening in the last hour of trading. Sixteen shares declined for each that rose on the gauge. Industrial & Commercial Bank of China Ltd., Ping An Insurance (Group) Co. and Kweichow Moutai Co. were among the biggest drags on Shanghai’s benchmark index. Hong Kong’s Hang Seng Index slid 1 percent from a decade-high.