China Stocks Post Worst Week in Two Months as Liquidity Tightens
- CSI 300 slides 3.5% this week, most among global benchmarks
- Central bank has signaled it will tighten the supply of cash
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Chinese stocks suffered their worst weekly decline since September, as concern over high valuations and the tightening supply of cash weighed on the market.
The CSI 300 Index dropped 1% Friday, extending this week’s loss to 3.5%. That’s the worst performance among global benchmarks. Brokerages -- whose shares are typically an indicator of investor sentiment -- have suffered some of the biggest losses in the past five sessions. A gauge of financial stocks slumped 5.4% this week, the most since state media criticized one of China’s most popular stocks in mid-July.