China stocks smashed to 4-month lows, sell-off extends

FXStreet (Mumbai) – Chinese equities prolong their downward spiral and once again witnessed a massive sell-off on Friday with the Shanghai Composite index losing as much as 7% in early trades. Markets blame the sharp sell-off to news that the China Securities Regulatory Commission (CSRC) had set up an investigation team to look into illegal market manipulation.

Currently, the benchmark Shanghai Composite (SSEC) trades -1.66%% lower at 3847.93, recovering from four month lows reached at 3633.40 earlier this session. The Chinese stocks extended their sell-off, despite intensifying efforts by authorities to revive investor confidence.

Citing unnamed sources, Reuters also reported that China’s financial futures exchange temporarily suspended 19 accounts from short-selling before trading resumed on Friday.

SSEC Technical Levels

The index has an immediate resistance stands at 4k. Meanwhile, support is seen at 3600 levels and from here to 3430 levels.

Chinese equities prolong their downward spiral and once again witnessed a massive sell-off on Friday with the Shanghai Composite index losing as much as 7% in early trades. Markets blame the sharp sell-off to news that the China Securities Regulatory Commission (CSRC) had set up an investigation team to look into illegal market manipulation.

(Market News Provided by FXstreet)