Chinese stocks have opened the week under significant selling pressure.
At the mid-session break the benchmark Shanghai Composite index has fallen 2.44%, taking its two-day decline to nearly 4%.
The decline in Shanghai is being mirrored in other mainland markets. The CSI 300 and 500 indices, comprising the 300 and 500 largest companies listed firms in Shanghai and Shenzhen, have fallen by 2.55% and 1.41% respectively, while the tech-heavy ChiNext index has slipped 1.86%.
Earlier today industrial profits data for June was released by China’s National Bureau of Statistics which revealed profits declined 0.4% from 12-months earlier.
Xinhua, citing research from Southwest Securities, note that around 3.7 billion “lock-up” shares worth 90.6 billion yuan, from 28 companies, will become tradable on the Shanghai and Shenzhen bourses between 27 and 31 July.
The shares, held my major investors for up to two years before being permitted to be sold, may also be contributing to the renewed bout of market weakness.