China stocks tumble most in two months as bond selloff continues

https://www.bloomberg.com/news/articles/2017-10-30/china-stocks-tumble-most-in-two-months-as-bond-selloff-continues

Chinese stocks dropped the most since early August, breaking the calm that persisted through last week’s Communist Party Congress, while government bonds extended a monthly rout.

The Shanghai Composite Index fell as much as 1.7 percent on Monday, and was 1.2 percent lower at 10:25 a.m. local time. Small-cap shares bore the brunt of the selling, with the ChiNext gauge tumbling as much as 2.5 percent. Equity indexes in Hong Kong erased gains. The 10-year yield climbed 4 basis points to 3.89 percent, a three-year high, amid concern the government will intensify a deleveraging campaign.

“Yields are rising. If funding in the market is tight, the more volatile ChiNext will come under pressure,” said Daniel So, Hong Kong-based strategist with CMB International Securities Ltd. “Hong Kong stocks have been dragged down by China.”

There’s more than 1 trillion yuan ($150 billion) of funding provided by the central bank that matures this week, the most since February.

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watching china really closely now..

401

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~ by seeker401 on October 31, 2017.

One Response to “China stocks tumble most in two months as bond selloff continues”

  1. Reblogged this on World Peace Forum.

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