The mini-riot stocks that spilled into global markets this week has calmed down for now, but the benchmark index in the world’s second-biggest economy, China, is still tumbling.
Here’s the one-day chart stretching back to June last year of the Shanghai Composite, which reflects prices for the top stocks held by both foreign and domestic investors.
While many markets across Asia including South Korea and Australia were higher today after a calmer session on Wall St, a short time ago the Shanghai Composite was down 1.66%, having been down a full 2% down earlier. The index has now lost around 8% from its highs in January.
Other Chinese indices are doing OK, with the Shenzhen Composite up 0.92%. The CSI300, which reflects the top stocks traded across both the Shanghai and Shenzhen exchanges, was down 1%.
While Chinese stocks have been falling in recent days, there’s no obvious reason for the continued fall.
China’s yuan fell heavily against the dollar on currency markets today, following reports China may be about to relax capital controls.