China stocks bleed, SSEC collapses 8.5% – worst since Asian crisis

FXStreet (Mumbai) – Last week’s sell-off extends in the Chinese equities, kicking-off this week on a weaker note as the blood bath continues after the markets were left unimpressed by the latest measures allowing pension funds to invest in the stock markets in a bid to cap the downward spiral.

Chinese stocks accelerated the rout and registered biggest drop since Asian financial mainly triggered by a strong injection of short-term liquidity into the interbank market that many read as a substitute for deeper easing crisis.

While many traders also believed that disappointment over the lack of a liquidity move by the central bank over the weekend triggered a fresh selloff.

The Hong Kong’s benchmark Hang Seng index losing -4.50% at 21415 while mainland China’s benchmark Shanghai Composite keeps falling and trades -8.45% at 3211.

Among other Asian indices, the Japanese benchmark Nikkei 225 is losing -4% at 18678. While the benchmark Australian S&P/ASX 200 index extends losses and plunges -3.40% at 5038 weighed down by a lack of risk sentiment. Korea’s benchmark Kospi index now trades -2.95% at 1,821 points in Seoul.

Last week’s sell-off extends in the Chinese equities, kicking-off this week on a weaker note as the blood bath continues after the markets were left unimpressed by the latest measures allowing pension funds to invest in the stock markets in a bid to cap the downward spiral.

(Market News Provided by FXstreet)