China stocks plunge on ‘Black Monday’, with nearly 500 stocks falling by daily limit of 10pc
The widespread decline was triggered by fears of a prolonged scrutiny on the financial sector, analysts said
More than 2,800 stocks fell across Chinese markets on “Black Monday”, with nearly 500 dropping by their daily limit of 10 per cent, as a financial work conference of the Chinese top leadership sparked fears that the financial sector will face a prolonged period of increased scrutiny.
The sentiment also took a further blow as a flurry of listed companies on the start-up board had warned of significant losses in the first half, including the troubled Leshi Internet Information & Technology.
Over 1,200 stocks declined by more than 7 per cent on the Shanghai and Shenzhen stock exchanges on what analysts dubbed as “Black Monday”.
Combined daily turnover for Shanghai and Shenzhen soared 48 per cent to 570 billion yuan from the previous session.
Stocks listed on the Shenzhen exchange, which feature more smaller-cap companies from the technology and consumption sector, suffered the most.
The ChiNext Index closed down 5.1 per cent at 1,656.43, the worst level in two and half years. The Shenzhen Composite Index sank 4.3 per cent to end at 1,800.54. The Shenzhen Component Index declined 3.6 per cent to 10,055.8.