China stocks fall to three-and-half month low as commodity futures sink
Sentiment nosedives as renewed regulatory clampdown, growth concerns unnerve investors
Mainland shares fell for the fourth day in succession to a to three and a half month low on Friday as sentiment remained lacklustre amid plunging commodity futures, falling economic growth and renewed regulatory tightening.
Hong Kong stocks also closed at the lowest level in more than a week, dragged down by the weakness in mainland markets.
Analysts said investors have been spooked by regulators’ sweeping measures to curb leverage in the financial system, which caused a liquidity squeeze in both equity and commodity markets. Recently-released economic data indicated that the Chinese economy is losing momentum, which also fuelled concerns that demand for commodities is weakening, weighing on the futures and related stocks.
The Shanghai Composite Index dropped 0.8 per cent, or 24.33 points, to close at 3,103.04, the weakest since January 19. For the week, the index fell 1.6 per cent, down for a fourth week in a row.
In the past four weeks, the Shanghai Composite Index had lost 5.6 per cent.
The large-cap CSI300 erased 0.6 per cent, or 21.84 points, to end at 3,382.55. The Shenzhen Composite Index and the startup board ChiNext index shed 1.2 per cent and 1.1 per cent each, finishing at 1,872.79 and 1,818.19.