Chinese Scholarships panic: prices plunge – Le Figaro

The tobacco out the Chinese Scholarships turns to panic. Today, trading in more than 500 companies is suspended. Now there are more than 1300 titles are concerned, nearly half of the 2,800 stocks listed in category “A” (in yuan) on the Chinese equity markets.

This measure extreme emergency did not prevent the Chinese markets to sink a little more. Chinese indices continued their nosedive today to fall to the floor unknown for more than four months. As investors continued to sell arms to turn small values, the market price of which had exploded in a year. What is new now, they also relieve themselves of great values.

The panic spread to the Hong Kong Stock Exchange and the Tokyo

” At the beginning of the purge, many investors refused to sell large values. But as many small values ​​are suspended, the only way to reduce its risk exposure is to sell large values, “said a trader at Northeast Securities. After a year of runaway financed largely by loans, the Chinese stock market has corrected 32% from its highs in mid-June, losing nearly 3,000 billion in capitalization.

The Shanghai Composite Index closed down 5.91% to 3,507 points, and the CSI300 index of large stocks listed in Shanghai and Shenzhen fell 6.75% to 3663.04 points. The panic spread to the Hong Kong Stock Exchange, where the Hang Seng Index lost 7.25% late in the session and also starting to worry the Tokyo Stock Exchange, which experienced its worst session since March 2014 with a decline of 3.14% of the Nikkei.

Nothing seems to stop the fall of the Chinese indices. In an attempt to reverse the trend, the authorities froze the introductory projects Bourse and orchestrated the mobilization of brokerage firms and money managers, who collectively committed to purchase at least 120 billion yuan, the the equivalent of 17.5 billion shares. The Central Bank is also leapt by opening a liquidity line to public company financing of investments on margin. In vain. After a little height on Monday Chinese markets are left down the next day and continue to sink.