- Shanghai stocks close down over 6% on economy fears
by AFP/rw, via http://www.channelnewsasia.com/news
Worries over the slowing Chinese economy and the government’s commitment to prop up shares have dragged stocks down in Shanghai.
SHANGAI: Stocks in Shanghai closed down more than 6 per cent Tuesday (Aug 18), their biggest fall in three weeks, due to worries over the slowing Chinese economy and the government’s commitment to prop up shares, dealers said.
The benchmark Shanghai Composite Index slumped 6.15 per cent, or 245.51 points, to 3,748.16 on turnover of 722.5 billion yuan (US$112.9 billion). It was the biggest one-day drop since Jul 27, when it plunged 8.48 per cent – its hardest fall in eight years.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, ended down 6.58 per cent, or 153.07 points, to 2,174.42 on turnover of 667.3 billion yuan.
“The market lacks the momentum to go up. There is no major positive news” on the economy, Shen Zhengyang, an analyst at Northeast Securities, told AFP. “In the short-term, the market will fluctuate on the weak side,” he said.