China stocks could hit biggest monthly loss in six years
31 Jul 2015
Chinese stocks slid today and looked to hit the biggest monthly loss in nearly six years even as Beijing introduced several support measures and promised additional support steps for the flagging economy.
Stocks had plummeted 30 per cent since mid-June, threatening further risks to an economy that was expected to report its slowest growth in a quarter of a century this year.
The Shanghai Composite Index was down 1 per cent to 3,669.45 points in morning trade and over the month so far, it was down 14.2 per cent, the biggest monthly drop since August 2009.
The CSI300 index declined 0.1 per cent to 3,812.34.
China CSI300 stock index futures for August was down 0.1 per cent to 3,678.6, but was still 133.74 points below the current value of the underlying index, indicating investors expected further losses.
However, according to some analysts, support measures by Beijing in recent weeks might be slowing a floor under the market even if it remained vulnerable to wild daily swings.
"The bottom of the A-share market has gradually been lifted since the previous collapses, from 3,400 points to 3,500 points, and now around 3,600 points," Reuters quoted Tian Weidong, head of reserch at Kaiyuan Securities.
The Shanghai Composite Index which tumbled 15 per cent this month, was dragged down by energy and industrial companies. This comes as the biggest loss among 93 global benchmark gauges tracked by Bloomberg, as margin traders cashed out and new equity-account openings retreated on concern valuations were unsustainable.
The Shanghai Composite was dragged down most by the Industrial & Commercial Bank of China Ltd which sank 8.5 per cent while, China Petroleum & Chemical Corp tumbled 15 per cent, and Ping An Insurance Co sank 19 per cent.
Turnover had fallen with the surge in volatility.
The value of shares traded on the Shanghai exchange yesterday was 53 per cent down from the 8 June peak, while a 100-day measure of price swings on the Shanghai Composite rose to its highest level in six years today.