China’s Shanghai Composite Index tumbled to its lowest level since March 20 as rallies by state-owned giants failed to outweigh a record drop in margin bets.
The benchmark stock gauge sank 3.9 percent to 3,626.96 at 11:10 a.m. local time, with more than 50 stocks falling for every one that rose. Material producers, technology and health-care shares led losses, while PetroChina Co. surged 7.3 percent on speculation of state fund buying. Traders cut 93.6 billion yuan ($15 billion) worth of holdings of shares purchased with borrowed money on the Shanghai exchange on Monday, the most since at least 2010.
A flurry of measures to stabilize the market, including a pledge by state-run financial firms to buy 120 billion yuan worth of shares and a halt to initial public offerings, is failing to stop the rout that erased more than $3.2 trillion of value in less than a month.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.