China Stocks Fall, Yuan Weakens as Central Bank Holds Loan Rate
- Shanghai Composite in biggest slide in more than two months
- Investors seen worrying central bank won’t aggressively ease
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China’s restrained approach to easing spooked financial markets Tuesday, with stocks and the yuan dropping the most in weeks.
The Shanghai Composite Index retreated 1.7%, its biggest decline in more than two months, to close below the psychologically important 3,000 level. The onshore yuan fell 0.37%, the most in three weeks, to 7.0950 a dollar as of 5:23 p.m. in Shanghai. The yield on China’s 10-year government bonds rose for a sixth day. In Hong Kong, the Hang Seng Index lost 1.2%.