Chinese stocks fall despite biggest cash injection in three years

(From China Daily)

Stocks plunged on Thursday despite the central bank’s biggest cash injection in three years inthe financial system.

Investor walks past investment screen in Nanjing

Investor walks past investment screen in Nanjing

The benchmark Shanghai Composite Index closed at 2,880.48, down 3.2 percent, while theShenzhen Component Index slumped 3.8 percent to 9,975.97.

Mining, energy and brokerage firms led the loss, as Dongxing Securities, Western Securities,and Tibet Mining Co dived by the daily limit of 10 percent. CITIC Securities, HaitongSecurities and Everbright Securities tumbled more than 4 percent.

The People’s Bank of China said on Thursday it conducted 110 billion yuan ($16.7 billion) ofseven-day reverse-repurchase agreements and 290 billion yuan of 28-day contracts,extending this week’s total net injection to 315 billion yuan.

The Shanghai gauge has dived 18.6 percent so far this year, which makes it among theworst-performing global benchmark according to Bloomberg.

The plunge came as China unveiled its slowest GDP growth of 6.9 percent in 25 years in2015, down from 7.3 percent in 2014, while the country’s consumer inflation increased 1.4percent, far below the government’s 3-percent target.

Despite market volatility, securities regulator gave green-light to seven initial public offerings(IPOs) on Tuesday, which will receive share subscriptions under a less liquidity-consuming rule. Read more

Categories: Asia Unhedged, China

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