China’s CSI 300 Index (SHSZ300) plunged to the lowest level in five years and the yuan weakened as an unexpected drop in exports spurred concern that the world’s second-largest economy is slowing.
The index of the largest Chinese stocks slid 3.3 percent to 2,097.79 at the close, the lowest level since February 2009, as Jiangxi Copper Co. and Yanzhou Coal Mining Co. tumbled more than 5 percent. The yuan fell as much as 0.5 percent against the dollar, which would be the steepest decline on a closing basis since December 2008, before paring its drop to 0.3 percent. Money-market rates slumped to a 21-month low amid speculation demand for cash is diminishing as economic growth weakens.
Overseas shipments plunged 18.1 percent in February, compared with analysts’ median estimate for a 7.5 percent increase, as distortions from the Lunar New Year holiday made forecasting more difficult. Investors are looking for policy guidance from this month’s National People’s Congress in Beijing amid concerns over slowing growth, a flood of new share sales and geopolitical tension between Russia and Ukraine.
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.