Relentless Selling in China Stocks Evokes Memories of 2018 Crash
- CSI 300, Hang Seng both slumped more than 3% before recovering
- Inflation seen complicating China’s path for policy easing
A customer browses shoes at a Li Ning Co. flagship store in Shanghai earlier in February.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
A bout of fresh volatility is hitting Chinese equities, evoking memories of the 2018 meltdown, as the war in Ukraine threatens to complicate the Asian nation’s plans to ease policy and potentially worsen its already strained relations with the U.S.
Traders were taken for a wild ride on Wednesday as stock benchmarks in China and Hong Kong both tumbled by more than 3% in early afternoon trading, only to pare bulk of those losses at the close. Still, the CSI 300 Index ended 0.9% lower in a sixth day of declines -- the longest losing run since March 2020, and the Hang Seng Index finished at its lowest since July 2016.