Chinese Stocks Hit by Major Slowdown, Biggest One-day Decline after 2007
Published By : 27 Jul 2015 | Published By : QYRESEARCH
Chinese stocks have dropped over 8% after the efforts by the state to prop up valuations stopped abruptly, which increased the doubts about the feasibility of the state’s strategy to save the stocks from a bigger crash. All the major indices in Beijing had their biggest one-day decline since 2017 on July 27, 2015. This decline has shattered the three weeks’ calmness in the volatile stock markets of China as Beijing is trying to recover the decline that initiated in mid-June, 2015.
The CSI300 index that includes the giant enterprises of Shanghai and Shenzhen has climbed to 3,818.73 points almost 8.6%, whereas the Shanghai Composite Index has dropped to 3,725.56 points, losing 8.5%. Stocks declined across the board on July 27, 2015, with the falling stocks of 2,247 companies. Only 77 companies were on the other side of the hedge.
Over 1,500 stocks listed in Shenzhen and Shanghai indices crossed their daily limit of 10 percentage point. Bank of Communications, China Unicom, and PetroChina were among the bigwigs that reported decline in the stock price. The sell-off rose significantly post lunch.
On Monday, the markets opened 2% low from the previous session, following the dull trading market at Chinese industrial enterprises in the previous week and a poor survey of private factory industry on Friday. The Chinese stock investors have been keeping an eye on the bad economic news for months as they thought that it would incite policy easing at a more aggressive front, which is expected to be positive for stocks because it thrusts cheap money into the marketplace.