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STOCK markets tanked more than 4 percent Friday, taking weekly losses for the main indexes to nearly 12 percent and casting doubt over China’s ability to prevent another bout of panic selling as the market neared collapse again.
The latest tumble followed similar declines in global markets and reflected sharp across-the-board falls in Chinese stock index futures as bears claimed victory over bulls on the settlement day for August index futures contracts.
Friday’s plunge may also have been exacerbated by a survey showing Chinese factory activity shrinking in August at the fastest pace in nearly 6-1/2 years.
But many investors also pointed to signs that regulators’ commitment to pushing up the market has weakened. On Aug. 14, the China Securities Regulatory Commission (CSRC) said it would allow market forces to play a greater role, while keeping state investors involved to maintain stability.
On Friday, the CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 4.6 percent, to 3,589.54, bringing the week’s loss to 11.9 percent — the worst performance since mid-June. The CSI300 has now given up all the gains it made since mid-March.
The Shanghai Composite Index lost 4.2 percent, to 3,507.74 points. For the week, that index tumbled 11.5 percent, the sharpest drop since the week ending July 3, and near the low it hit July 9 during the height of the recent market rout.
Hong Kong shares fell in tandem. The Hang Seng Index lost 1.5 percent Friday, and 6.6 percent last week, putting it back near where it was in May 2014 and making it a bear market territory, with a fall of more than 20 percent since April.
The China Securities Regulatory Commission (CSRC) made no mention of the week’s slump during its regularly scheduled press conference after market close Friday, nor did it take questions on the topic.
However, the CSRC announced on its official social media feed that it is investigating major stakeholders in listed companies for illegally selling off their shares.(SD-Agencies)
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