Chinese shares
fell on Tuesday, as Beijing scrambled once again to prop up a stock
market whose wild gyrations have heightened fears about the financial
stability of the world's second biggest economy.
After
a plunge of more than 8 percent in major indexes on Monday, Chinese
regulators said they were prepared to buy shares to stabilize the stock
market, while the central bank injected cash into money markets and
hinted at further monetary easing.
But despite those moves, aimed at bolstering the confidence of the ordinary investors who dominate China's equity markets, the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen fell 0.2 on Tuesday, while the Shanghai Composite Index .SSEC shed 1.7 percent.
A highly volatile day - not unusual in China's unruly stock markets - had seen both indexes lurching between losses as deep as 5 percent and gains of more than 1 percent.
"Retail investors' confidence in the mainland market is very weak," said Steven Leung, a director from UOB Kay Hian in Hong Kong.
Monday's dramatic slide shattered three weeks of relative calm for Chinese equities, secured through heavy government intervention in which authorities pumped liquidity into the market while effectively barring many investors from selling.
The rapid sell-off, which saw China's major indexes suffer their biggest one-day loss in more than eight years, may have been partly due to authorities testing the water for withdrawing some of that heavy-handed support.
Three people in the banking industry with direct knowledge told Reuters on Monday that the state-run margin lender had returned ahead of schedule some of the funds it borrowed from commercial banks to stabilize the stock market.
"The authorities picked an inopportune time to float a trial balloon about scaling back market support operations," wrote Tim Condon, head of research Asia for ING Bank in Singapore, in a note on Tuesday.
But despite those moves, aimed at bolstering the confidence of the ordinary investors who dominate China's equity markets, the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen fell 0.2 on Tuesday, while the Shanghai Composite Index .SSEC shed 1.7 percent.
A highly volatile day - not unusual in China's unruly stock markets - had seen both indexes lurching between losses as deep as 5 percent and gains of more than 1 percent.
"Retail investors' confidence in the mainland market is very weak," said Steven Leung, a director from UOB Kay Hian in Hong Kong.
Monday's dramatic slide shattered three weeks of relative calm for Chinese equities, secured through heavy government intervention in which authorities pumped liquidity into the market while effectively barring many investors from selling.
The rapid sell-off, which saw China's major indexes suffer their biggest one-day loss in more than eight years, may have been partly due to authorities testing the water for withdrawing some of that heavy-handed support.
Three people in the banking industry with direct knowledge told Reuters on Monday that the state-run margin lender had returned ahead of schedule some of the funds it borrowed from commercial banks to stabilize the stock market.
"The authorities picked an inopportune time to float a trial balloon about scaling back market support operations," wrote Tim Condon, head of research Asia for ING Bank in Singapore, in a note on Tuesday.
No comments:
Post a Comment