China Shares Fall Another 1.7% on Tuesday

Shares in mainland China continued their slide on Tuesday, following a massive sell-off the previous day.

The Shanghai Composite fell a further 1.7% to 3,663.00, having sunk 8.5% on Monday – its biggest drop in eight years.

China has tried to calm investors by reassuring it will implement prudent monetary policy to stabilise markets.

The country’s central bank said it would inject 50bn yuan (£5.2bn; $8.05bn) into the money markets.

The People’s Bank of China also insisted that the country’s main economic indicators were steadily improving.

Monday’s dramatic drop had been triggered by weak economic data on profits at Chinese industrial firms, and a disappointing survey of the manufacturing sector on Friday.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza