“But it [the index] has crashed through that [the 3,500-point level]”, said Mr Hageback, adding that calling the bottom of China’s market decline was more hard than elsewhere around the world. By 11:15 a.m. local time it was trading down 4.7 percent at 3058; the secondary index in Shenzhen opened down 6.9 percent, before also reversing its fall slightly.
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Hong Kong stocks rose 153.39 points, or 0.72%, to close on Tuesday at 21,404.96 points, ending a seven-day slump.
China’s IPO markets are virtually on hold after Chinese authorities stepped in to try to relieve some of the pressure off markets. However, analysts said this short-term injection of funds was not particularly reassuring to investors, who had been hoping for further long-term policy easing – such as a cut in reserve requirement ratios to encourage bank lending – as a signal that the government remained committed to propping up the markets. Stocks in Hong Kong were off an additional -5.17%, with Japan down -4.61%.
Heavyweight securities firms were among the biggest losers in Shanghai, where more than 800 shares fell by their 10 per cent daily limit, according to Bloomberg News.
As for energy stocks, China’s top refiner Sinopec dropped 1.95 percent to 5.04 HK dollars. Technology companies were the second-biggest drag on the Asia-Pacific gauge Monday.
The Turkish lira, its plight exacerbated by domestic political developments, languished near a record low.
As of June 2015, there were 1,063 companies listed with over 3,700 stocks and bonds at the Shanghai stock exchange (SSE), which was founded in 1990.
Investors will be looking to China’s next move after The Wall Street Journal reported that the central bank is preparing to flood the banking system with liquidity to boost lending.
The World Gold Council has said China’s gold demand this year is expected to at least hold steady with last year at just under 1,000 tonnes and will not likely be dented by a devaluation in the country’s currency this month. It marks the Nikkei’s lowest level in nearly five months.
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It (Other OTC: ITGL – news) lost 5.5% – or £93bn – of its value last week alone. In Singapore the ST Index crashed 6.77% to 1,332.46.
