MercoPress. South Atlantic News Agency
Chinese shares on the slide after dropping 8% on Monday; central bank to inject liquidity
Monday's dramatic drop followed weak economic data on profit at Chinese industrial firms and a disappointing private factory sector survey on Friday. 
China Securities Finance said there would be a crackdown on short selling. “Any malicious trading will be investigated and severely punished” 
The country's central bank said it would inject 50bn Yuan ($8.05bn) into the money markets to help stabilize markets Shares in mainland China continued their slide on Tuesday, after a historic sell-off the previous day. The Shanghai Composite fell by 4.3% to 3,567.38 points in early trade, after the index on Monday saw its biggest drop in eight years with an 8% tumble.
China has tried to calm investors by reassuring it would implement prudent monetary policy to stabilize markets. The country's central bank said it would inject 50bn Yuan ($8.05bn) into the money markets. The People's Bank of China also insisted that the country's main economic indicators were steadily improving.
The dramatic drop on Monday, though, had followed weak economic data on profit at Chinese industrial firms and a disappointing private factory sector survey on Friday.
The regulating authority China Securities Finance Corporation (CSFC) also said there would be a crackdown on short selling. “Any malicious trading will be investigated and severely punished,” the CSFC warned in a statement.
In Hong Kong's, the Hang Seng index followed the mainland's lead and was down by 0.5% to 24,229.47 points in early trade.
Elsewhere in Asia, stock took the cue from the poor performance on the Chinese mainland and also traded in negative territory.
Asia's largest stock market, Japan's Nikkei 225 was 1.1% down to 20,123.70 points.
Shares in camera maker Canon were up 0.8%. The rise comes as a surprise after the firm cut its earnings outlook and reported a 16% fall in quarterly profit on Monday.
Sales are hit by consumers increasingly using their smart phones rather than compact cameras.
In South Korea, the benchmark Kospi fell 0.9% to 2,019.92 points. Relief for stocks could come from Prime Minister Hwang Kyo-Ahn declaring the end of the deadly outbreak of Middle East Respiratory Syndrome (Mers).
36 people died out of the 186 infected by the virus, following the first diagnosis on 20 May. The outbreak had been a major strain on the country's economy, affecting domestic consumption and tourism. The quarantine of the last suspected patient was lifted on Monday.
Australian stocks followed the region's trend, falling 0.9% to 5,542.20 points.
China is Australia's main market and the dramatic volatility in Chinese stocks as well as the slowing growth indicators are likely dampening investor sentiment.
Top Comments
Disclaimer & comment rules-
-
-
Read all commentsChina is pouring huge amounts of money into the Zombie banks and the Stock market to keep them both afloat.
Jul 28th, 2015 - 11:02 am 0It won't work.
They've destroyed 3 generations of wealth.
65,000,000 condos are vacant.
This is only the beginning.
The U$3-4T they have in reserves isn't near enough to help them. They will fritter it away supporting their various bubbles then there won't be enough to buy food.
Fun to watch tho...
When you visit China you see loads of half finished empty tower blocks. People have been investing money in the stock market causing a bubble. So, a property bubble, a stock market bubble. The Chinese are learning about capitalism the hard way. The Argies shouldnt see China as an economic saviour or partner because all the Chinese care about is China. They have a population problem and an unemployment problem. They see the answer to that as colonising parts of Africa and South America by stealth.
Jul 28th, 2015 - 11:28 am 0@ 1 yankeeboy
Jul 28th, 2015 - 11:29 am 0Ahh! The fabled U$D 3 / 4 Trn has been claimed for quite a while now even though their onward trading has been subdued to say the least.
Given all the bribery to the numpty-heads of SA and elsewhere in the world by China it does make me wonder IF there is anything like that amount left in real money or is it in Yuan, hot off the presses?
Time is quickly running out for the new breed of commie Emperors running China: they seem to have run out of ideas on what to do.
Perhaps The Brainless One can come up with something, like a few idiotic links to other sites? Ha, ha, ha.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!