By Karen Yeung ( SCMP HK) @klky99
Mainland Chinese markets resumed declines on Monday amid concerns increasing regulatory oversight could tighten liquidity.
“With regulators intent on deleveraging, this recent market collapse may be a sign of things to come,” said Stephen Innes, APAC head of trading at Oanda, in a research note.
“As Beijing moves to standardise financial markets, it will likely lead to more short-term capitulations as investors are now required to face the inherent risk from high-yielding volatile assets as opposed to relatively risk-free returns as more financial reforms take hold.”
The Shanghai Composite Index fell 0.88 per cent, or 29.51 points, to 3,324.31 while the CSI 300 – which tracks large caps listed in Shanghai and Shenzhen – slid 1.40 per cent, or 57.52 points, to 4,046.68.