China Stocks Sink to Five-Year Low as Traders Unwind Rescue Bets
- Outlook worsens as factory activity shrinks for fourth month
- Investor sentiment is still extremely bearish: Union Bancaire
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A selloff in Chinese stocks deepened, with a key index falling to a five-year low and wiping out all the gains that it made last week on optimism over stronger support measures by the authorities.
The CSI 300 Index of mainland shares slipped 0.9%, ending the day below its close on Jan. 22 when authorities pledged more forceful measures to support the market. That was followed by expectations of a 2 trillion yuan ($278 billion) rescue package and the central bank’s decision to cut banks’ reserve requirement ratio.