Like sands through the hourglass, so too are the declines on China’s stock market.
They’ve fallen heavily again on Monday, adding to the losses on Friday.
Here’s how stocks are faring with 40 minutes left to trade.
Shanghai Composite 2,535.12 , -2.45%
SSE50 2,383.12 , -3.47%
Shenzhen Composite 1,264.50 , -2.02%
CSI300 3,069.12 , -3.29%
CSI500 4,155.95 , -1.84%
Hang Seng 24,955.79 , -0.25%
USD/CNY 6.9553 , 0.18%
USD/CNH 6.9630 , 0.14%
Be they dominated by large or small-caps, all mainland indices are nursing losses ranging between 1.8% to 3.5% with the most acute declines being seen in the SSE 50, comprising the 50-largest companies listed in Shanghai.
The latest selloff follows the release of Chinese industrial profits over the weekend that showed a 4.1% increase over the past year, the weakest level since March this year.
Annual growth in industrial profits has now fallen for five consecutive months, adding to signs of weakening economic activity in the world’s second-biggest economy.
As yet, news that China’s banking and insurance regulator has urged lenders in Beijing to avoid forced liquidation of pledged shares to help stabilise the country’s stock market, has done little to improve the dour mood.
The report from Chinese financial magazine Yicai, citing unnamed sources, reported that “lenders in Beijing have been urged to set up a dynamic mechanism to monitor risks of pledged shares and to defuse risks in a stable and orderly manner,” according to Reuters.
Nor has there been any real reaction from investors to separate reports that Chinese policymakers will ease restrictions on share buy-backs by public companies.
According to Reuters, citing an article from the state-run Xinhua news agency, listed companies will be allowed to buy back their publicly traded shares for purposes such as issuing convertible bonds, or to defend corporate values and protect shareholders’ interests.
Those moves, like other recent policy measures such as tax cuts and cash liquidity injections that have been announced in recent weeks to help stymie selling pressure, do not appear to working given the price action seen on Monday.
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