China's Domestic Stocks Slide, Heading for Worst Week Since 2016
- State-funds ready to step in if slide continues: Hengsheng
- Tight liquidity, poor earnings seen as concerns for investors
This article is for subscribers only.
Chinese domestic stocks took a dive on Thursday, deepening a slump that’s sent benchmarks toward their worst week since 2016, and posing a test of authorities’ tolerance for declines.
The Shenzhen Composite Index dropped 3 percent to a six-month low, while the Shanghai Composite Index lost 1 percent. Information technology and health care shares were among the hardest hit, with dozens of stocks on both exchanges down by the limit of 10 percent. Guangzhou Automobile Group Co. was among those that fell by the daily limit, hitting its lowest level since April 2016.