China markets plunge, Shanghai at two-month low
China markets plunged today, returning to a downward trend as Beijing took no moves to restore fragile investor confidence.
The Shanghai Composite Index dropped 4.3 percent to a two-month low, with over 50 stocks fell to the 10 percent trading floor. The Shenzhen A-share index fell 4.9 percent. Hong Kong's benchmark Hang Seng Index tracked mainland falls dropping 1.7 percent while turnover shrank significantly to HK$64.4bn from yesterday's HK$71.5bn.
The China Enterprises Index, which tracks major mainland stocks listed in Hong Kong, was down 1.6 percent.
Taiwan's Taiex Index finished marginally down 0.02 percent.
Property stocks took a big hit. Mainland-listed property shares lost 7.1 percent on average and the Hang Seng Property Index dropped 2.45 percent.
Five Shenzhen-listed real estate plays dropped by the daily 10 percent cap, including: Sunshine City Group (SZ:000671), COFCO Property (SZ:000031) and Heilongjiang Tianlun (SZ:000711, HK:0278) dropped 10 percent.
Non-ferrous metal shares dropped 7.67 percent on average. Jiangxi Copper (SH:600362, HK:0358) dropped 8.4 percent in Shanghai and 4.1 percent in Hong Kong. Western Mining (SH:601168) dropped 9.3 percent. Inner Mongolia Baotou Steel Rare Earth (SH:600111) and Jiangsu Alcha Aluminum (SZ:002160) fell to the 10 percent trading floor.
Pharmaceutical shares rose on news that the government will start heavily subsidising a list 307 common medicines, including 200 prescription only drugs. ZhuZhou QianJin Pharmaceutical (SH:600479) lifted 8.3 percent. Shandong Wohua Pharmaceutical (SZ:002107) rose 6.1 percent. Yunnan Baiyao Group (SZ:000538). Was up 5.4 percent.
Everbright Securities (SH:601788), which rose a modest 30 percent on first day of trading yesterday, fell by the 10 percent daily limit today.
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