Chinese Stocks Slump as Upbeat Data Deepens Liquidity Concerns
- The CSI 300 Index falls nearly 3% in afternoon trading
- Liquidity concerns remain biggest overhang on stocks: KGI Sec
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China’s stocks slumped, as a neutral lending stance from the central bank and data showing surging economic activity renewed concerns about tightening liquidity.
The CSI 300 Index closed 2.2% lower, after falling nearly 3% in afternoon trading. Stocks had initially pared losses on data showing growth rates of more than 30% for key economic indicators. Traders said sentiment was driven by the central bank’s offering of medium-term funds to lenders, which was just enough to offset what was coming due.