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.


watching china really closely now..


~ 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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