- Chinese stocks fell heavily in Wednesday trade, led by large caps.
- Property developers, in particular, were hit hard.
- The Chinese yuan hit the weakest level against the greenback since December 2017.
It’s been another bleak day for Chinese stocks, especially for large caps.
As seen in the final scoreboard below, all major indices suffered substantial losses on Wednesday.
The Chinese yuan is also under pressure, falling to the weakest level against the greenback since December 2017, although it’s now off its earlier lows.
Shanghai Composite 2,812.87 , -1.11%
SSE50 2,451.78 , -2.19%
Shenzhen Composite 1,573.50 , -1.42%
CSI300 3,458.58 , -2.05%
CSI500 5,109.61 , -0.98%
Hang Seng 28,988.83 , -1.13%
USD/CNY 6.5973 , 0.30%
USD/CNH 6.5989 , 0.28%
After entering a bear market on Tuesday, the benchmark Shanghai Composite Index tumbled by 1.11%, led by steep losses in property developers, airlines and retailers.
From a broader sector perspective, consumer staples led the declines, falling 3.4%. Heavy losses were also seen in healthcare and energy which shed 3% and 2.1% respectively.
All other sectors finished lower aside from energy, which was supported by a another surge in crude oil prices on Tuesday.
The declines in larger cap stocks were even larger than the Composite with the SSE50 — an index of the 50 largest listed companies in Shanghai — sliding 2.19%.
It’s lost 23.4% since January 24.
The daily chart below is just plain ugly.
The CSI 300 — an index of the 300 largest listed companies in Shanghai and Shenzhen — also fell 2.05%.
Small cap and tech stocks fared a little better with the CSI 500, Shenzhen Composite and ChiNext closing down 1%, 1.4% and 1.1% respectively.
Stocks in Hong Kong were also spared the worst of the selling pressure with the Hang Seng off 1.1% in late trade.
On Wednesday, China’s state-run tabloid Global Times newspaper said the nation should take “self-defense measures” against US tariffs by offering subsidies to companies and industries that may suffer losses from trade frictions.
It added that China might need to “adjust its policies” to open up its markets due to economic uncertainty arising from trade tensions.