FXStreet (Bali) – China’s Shanghai Composite index opened down 6.97% at 3,467.40, and just a few minutes into trading was already down 8% – largest sell-off since 2007 -, with over 1400 China companies to suspend trading on Wednesday, which accounts for over 50% of total 2754 listed firms.
Meanwhile, the tech-dependent Shenzhen Composite was also heavily sold around 8.1%, while the CSI 300 had fallen 8%. In Hong Kong, the Hang Seng tumbled 4.5%, which would represent the largest one-day sell-off sin over 4 years.
According to FastFT: “According to Reuters, China’s insurance regulator said qualified insurers may now increase the ratio of equity assets to 40 per cent, from 30 per cent, in what looks to be another measure from Beijing to direct buying. China’s securities regulator said financial futures will be “closely” monitored to “control risks.”
Patrick McGee, Lead Writer at FastFT, said the following in his Twitter account: “An 8% decline in China – If all shares were trading – would wipe $518bn off the market ($6.48tn market cap as of Tuesday).”
(Market News Provided by FXstreet)