Another Brutal Day In China

The Shanghai Composite has fallen further into bear market territory, tumbling 3.8% to 1,888.68.

Markets continue to be concerned about a liquidity crunch that could hurt already slowing economic growth.

The Shanghai Composite tumbled 5.2% on Monday after the People’s Bank of China said that liquidity conditions were at “reasonable levels,” despite the recent spike in interbank rates.

It has been argued that Chinese policymakers are willing to settle for some short-term pain in order to move towards more stable, longer-term growth.

The SHIBOR fix, Shanghai Interbank Offered Rate, for June 25 fell 75 bps to 5.7360%.

Here’s a look at the five-day chart of the Shanghai Composite:

shanghai composite, june 25

Follow Business Insider Australia on Facebook and Twitter

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.