Global Rout Threatens to End China’s Leverage-Loving Stock Binge
- CSI 300 rose to two-year high last week as U.S. stocks sank
- China market resilience built on liquidity and stimulus hopes
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The recent buoyancy in the world’s second-largest stock market in China was under threat Monday after oil plunged and U.S. index futures tumbled.
A gauge of stocks in Shanghai and Shenzhen fell 3.4%, finishing near the day’s low, while selling by foreigners hit a record 14.3 billion yuan ($2.1 billion). An index of Chinese shares traded in Hong Kong dropped 4.5%, the most in two years, as China National Offshore Oil Corp. slumped a record 17%.