China stocks plunge again as hopes for strong economic recovery fade

(From China Daily)

China stocks fell sharply again on Monday, reaching eight-month lows, as investors saw hopes for a strong economic recovery fade and worried about fresh regulatory curbs on speculation.

thumbs-downFollowing the market’s nearly 3 percent slump on Friday, China’s blue-chip CSI300 index fell 2.1 percent, to 3,065.62, while the Shanghai Composite Index lost 2.8 percent, to 2,832.11points.

China April trade data, released on Sunday, doused investor hopes of a sustainable economic recovery, with both exports and imports falling more than expected.

Recovery hopes were further dimmed by an article on Monday in the official People’s Daily. It cited an “authoritative source” saying China’s economic trend will be “L-shaped”, rather than”U-shaped”, and definitely not “V-shaped”, but the government will not use excessive investment or rapid credit expansion to stimulate growth. Read more

 



Categories: Asia Unhedged, China

Tags: ,