An honorable member of the Coffee Shop Has Just Posted the Following:
China’s stocks tumbled, with the benchmark index falling the most since June 2007, amid concern a three-week rally sparked by unprecedented government intervention is unsustainable.
The Shanghai Composite Index plunged 8.5 percent to 3,725.56 at the close, as 75 stocks dropped for each that rose. The Hang Seng China Enterprises Index sank 4.2 percent at 3:03 p.m. in Hong Kong, extending the world’s worst decline in the past month.
Monday’s retreat shattered a sense of calm that had fallen over mainland markets last week, raising questions over whether government efforts to prop up prices are viable amid weak economic growth. China’s industrial profits fell 0.3 percent in June from a year earlier, the statistics bureau reported on Monday. The International Monetary Fund has urged China to eventually unwind its support measures, according to a person familiar with the matter.
“Today’s rout in China poured cold water on investor sentiment,” said Mari Oshidari, a Hong Kong-based strategist at Okasan Securities Group Inc. “This also revealed the market is still too fragile without government support.”
The Shanghai gauge rebounded 16 percent from its July 8 low through Friday as officials went to extreme lengths to halt a rout that wiped $4 trillion off the nation’s equities. Officials allowed more than 1,400 companies to halt trading, banned major shareholders from selling stakes, restricted short selling and suspended initial public offerings.
The Hang Seng Index fell 3.1 percent.
http://www.bloomberg.com/news/articl...strial-profits
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27-07-2015, 04:40 PM
China Stocks Sink
