Chinese markets volatility continue despite government measures

Tuesday, July 7th 2015 - 10:00 UTC

Full article 32 comments

Shanghai Composite Index has tumbled by nearly 30% since a peak on June 12. Stock declines were seen to be linked to new margin-trading restrictions.

Chinese stocks plunged Tuesday after mixed fortunes Monday, with the benchmark Shanghai Composite Index tumbling 3.2% at opening. The Shenzhen Component Index also opened 3.4% lower and the ChiNext Index, tracking growth enterprises, opened 3.8% lower.

The continued volatility in the markets suggests measures announced over the weekend to shore up share prices may not be enough to reverse the recent free-fall, analysts say.

Twenty-eight Chinese companies said over the weekend they would postpone initial public offerings and would refund money already paid, the official Xinhua news agency reported.

China's major securities brokers also vowed Saturday to spend no less than 120 billion yuan (19.62 billion dollars) for a fund to invest in blue chip-based exchange traded funds.

The announcements followed government measures, such as a cut in interest rates last month, that had failed to reverse the slump.

The Shanghai Composite Index has tumbled by nearly 30% since a peak on June 12. The stock declines were seen to be caused partly by investor unease over new margin-trading restrictions.

Margin trading, where investors borrow money from brokers to buy stocks, had fuelled recent rises in the stock market and raised concerns that margin debt has created a bubble.

Categories: Economy, International.

Tags: China, Shanghai Composite Index.

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POP!
Jul 07th, 2015 - 12:54 pm 0
Pugol-H
“You can’t buck the markets”, as Mrs Thatcher famously said.
Jul 07th, 2015 - 03:09 pm 0
yankeeboy
The Chinese will end up wiping out 3 generations of wealth through bad policy and misunderstanding the market.
Btw I'm the only one on this board who predicted this, countless times argueing with Statists claiming with glee the chinese would overtake the USA.
I await their apology and their admission of being retarded.
Voice vestige derek think toby bras stevie dany and others im talking to you.
Man up losers.
Jul 07th, 2015 - 04:05 pm 0

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