Friday 9 December 2016

China shares post worst monthly loss in 6 years despite gov't support steps

Published 31/07/2015 | 08:34

An investor smiles as she walks past an electronic board showing stock information at a brokerage house in Fuyang, Anhui province, China, July 17, 2015. China stocks closed up on Friday, overcoming a mid-week slide to end up for a second week, with market insiders saying the
An investor smiles as she walks past an electronic board showing stock information at a brokerage house in Fuyang, Anhui province, China, July 17, 2015. China stocks closed up on Friday, overcoming a mid-week slide to end up for a second week, with market insiders saying the "national team" of brokerages, mutual funds and market regulators were intensifying intervention, especially in the futures market. REUTERS/Stringer CHIN

China stocks fell on Friday and posted their biggest monthly loss in nearly six years, even as Beijing rolled out a series of support measures and promised to step up efforts to bolster the flagging economy.

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The Shanghai Composite Index, which tracks all the tickers trading on the Shanghai Stock Exchange, lost 1.1 percent to end at 3,664.0 points.

It fell 10 percent for the week and 14.3 percent for the month.

The CSI300 index rose 0.03 percent, to 3,816.7.

After more than doubling in a year, China's stock markets fell into a savage correction in mid-June, slumping some 30 percent. But they are still up some 13 percent so far this year.

"The market is still in the process of deleveraging and funds are flowing out," said Li Zheming, an analyst at Daton Securities.

"Investors become especially sensitive towards the weekend when Beijing usually releases new messages, and that's why they tend to square their positions on Friday."

China's securities watchdog said on Friday it was investigating the impact of automated trading on share markets, as authorities step up a crackdown on what they regard as heavy speculative selling that could destabilise the world's second-largest economy.

The ruling Communist Party has enlisted the central bank, the state margin-lender, commercial banks, brokers, fund managers, insurers and pension funds to buy shares, or help fund their purchase, to help stave off a full-blown crash.

The largest percentage gainer on the Shanghai exchange on Friday was Tielong Log, which rose 10 percent, while the largest percentage decliner was Xinji Energy, down 10 percent.

Among the most active stocks in Shanghai were Agriculture Bank of China, up 0.88 percent to 3.44 yuan and Bank of China, down 1.55 percent to 4.45 yuan.

In Shenzhen, Suning Appliance, up 1.3 percent to 13.79 yuan and Myhome, down 4.5 percent to 5.26 yuan, were among the most actively traded.

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