Chinese stocks sink to lowest levels since 2014 | Fin24
 
Loading...

Chinese stocks sink to lowest levels since 2014

Oct 11 2018 10:45

Chinese stock markets plunged to their lowest levels in four years on Thursday following a global rout.

The benchmark Shanghai Composite Index dropped 5.22% to close at 2 583.46, marking the lowest level since November 2014.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, plummeted 6.45% to 1 293.90, the lowest point since September 2014.

It is the second dive in Chinese bourses this week after both Shanghai and Shenzhen fell nearly four percent on Monday.

"(The) Chinese market already suffered a blow in confidence after Monday and investors were in a very sensitive state of mind," said Zhang Yanbing, analyst with Zheshang Securities.

"So they panicked and overacted today."

Other Asian markets also tumbled Thursday following the worst session on Wall Street for months, as US President Donald Trump said the Federal Reserve had "gone crazy" with plans for higher interest rates.

"With the global markets rout, mainland shares cannot stay safe," Guangzhou Wanlong Securities said in a research note.

"Interest rate put aside, the Sino-US trade spat is to blame for the October market rout because people are worried the friction would evolve into a political confrontation."

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

equities  |  markets  |  china stocks
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Can the SABC avoid retrenching staff?

Previous results · Suggest a vote

Loading...