Chinese stocks fell, extending Tuesday’s plunge, despite efforts by the government to soothe nerves rattled by the threat of additional tariffs.
The Shanghai Composite Index slid 0.6% to a two-year low. The gauge sank almost 4% yesterday, wiping out $406 billion of value, as investors unwound leveraged positions at the fastest pace since January 2017. With Washington and Beijing threatening tit-for-tat moves over import taxes, investors are worried a trade war will hurt earnings and act as a brake on China’s economy.
People’s Bank of China Governor Yi Gang said on Tuesday policy makers are prepared for outside shocks and that investors should take a rational view, while official media also projected a positive image. The China Securities Journal said in a front page article that the quality and resilience of Chinese economic development will be better than expected. The Shanghai Securities News said good economic prospects and stable liquidity would support the market.
The Shanghai Composite Index slid 0.6% to a two-year low. The gauge sank almost 4% yesterday, wiping out $406 billion of value, as investors unwound leveraged positions at the fastest pace since January 2017. With Washington and Beijing threatening tit-for-tat moves over import taxes, investors are worried a trade war will hurt earnings and act as a brake on China’s economy.
People’s Bank of China Governor Yi Gang said on Tuesday policy makers are prepared for outside shocks and that investors should take a rational view, while official media also projected a positive image. The China Securities Journal said in a front page article that the quality and resilience of Chinese economic development will be better than expected. The Shanghai Securities News said good economic prospects and stable liquidity would support the market.
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