Chinese stocks were trading higher for most of the session but then nosedived into the close

iStockLast hour on the Shanghai Composite on Thursday.

It’s been another tough day for Chinese stocks, giving up modest early gains to finish deep in the red.

Here’s the closing scoreboard on Thursday.

Shanghai Composite 2,785.98 , -0.97%
SSE50 2,424.03 , -1.17%
Shenzhen Composite 1,556.82 , -1.19%
CSI300 3,422.60 , -1.06%
CSI500 5,055.68 , -1.05%
Hang Seng 28,567.29 , -0.59%
USD/CNY 6.5973 , 0.27%
USD/CNH 6.6218 , 0.08%

Be they large or small caps, tech or more established sectors, all lost around 1%, adding to the steep losses seen not only this week, but over the past few months.

The benchmark Shanghai Composite Index closed off 0.97% at 2,789.98 points, extending its slide since January 29 to 22.3%.

The sharp and sudden late selloff will do nothing to calm investor nerves, raising concern that we may be about to see a repeat of the market turmoil of late 2015 early 2016.

Thomson ReutersShanghai Composite 5-Minute Chart. June 28, 2018.

Earlier this week, China’s National Institution for Finance and Development (NIFD), a Chinese government-backed think tank, warned of a looming “financial panic” in Chinese markets.

“We think China is currently very likely to see a financial panic,” the NIFD study said.

“Preventing its occurrence and spread should be the top priority for our financial and macroeconomic regulators over the next few years.”

As has been the case for well over a week, the Chinese yuan was also in the wars, falling to a fresh year-to-date low against the US dollar.

The People’s Bank of China set the USD/CNY daily trading midpoint at 6.5960, up from 6.5569 a day earlier. That was the highest level since December 20 last year.

A higher number implies a weaker yuan against the greenback..

The USD/CNY traded to as high as 6.6247 during the session, although its now off those highs.

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