China Stock Slump Deepens as Regulatory Crackdown Spooks Traders
Chinese stocks fell, with the benchmark index heading for its lowest close since mid-January, as investors shrugged off government efforts to limit the market impact from tighter financial market regulations.
The Shanghai Composite Index dropped 0.5 percent to 3,121.08 as of 10:32 a.m. local time, taking the drop from its April high to 5 percent. Commodity producers led losses after metal prices tumbled the most since November. HSBC Holdings Plc rose 0.4 percent before it announces earnings. The Hang Seng Index slipped 0.6 percent as Hong Kong’s markets reopened after a holiday on Wednesday. The Hang Seng China Enterprises Index slid 0.9 percent.
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Chinese shares have been among the world’s worst performers this month and bond yields have climbed to the highest levels since 2015 as regulators overseeing banking, insurance and securities trading issued a flurry of directives, targeting everything from excessive borrowing to speculation in equities. The central bank-run Financial News urged stock investors not to overreact in front-page commentary Wednesday.
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