Having been hammered yesterday, Chinese stocks have opened Tuesday’s session significantly lower.
The benchmark Shanghai Composite index, fresh from falling 8.48% yesterday, has lost an additional 3.74%. In the space of just two and a bit sessions the index has now suffered a loss in excess of 10%, marking a technical correction.
The SSE 50 index, comprising the 50-largest firms by market capitalisation in Shanghai, is also under pressure, dropping 2.40%.
Elsewhere the CSI 300 and 500 indices, containing the 300 and 500-largest firms in Shanghai and Shenzhen, are also lower by 3.30% and 4.57%% respectively.
Overnight the CSRC, China’s stock market regulator, announced that it would step up efforts to underpin the market. The PBOC, before trade got underway, also injected 50 billion yuan into the nation’s financial system, the largest increase seen since July 7 this year.
While it’s early days, for the moment, these attempts to buttress the market appear to have been unsuccessful.
As reported by Business Insider