China Shares Sink Most Since 2016 as 1,000 Stocks Fall by Limit




 

(Bloomberg) -- Even for the world's worst-performing stock markets, Thursday's losses were extreme.

China's benchmark equity gauge closed 5.2 percent lower, the biggest loss since February 2016, as a global sell-off spread. More than 1,000 stocks fell by the daily limit, or more than one in four. The Shanghai Composite Index ended below 2,600, a level not even breached during market crashes in 2015 and 2016.

Hong Kong didn't fare much better, with the Hang Seng Index dropping 3.5 percent , the biggest in eight months. Tencent Holdings Ltd., the most valuable stock listed in Asia, slid 6.8 percent to extend a record losing streak to a 10th day.

Chinese shares have been the ground zero for the trade war with the U.S. The Shanghai Composite has lost 24 percent in the past 12 months, one of the worst performers among 94 global gauges tracked by Bloomberg, with the majority of the decline happening this year. A slowing economy and weakening currency is only adding to the gloom.

"Panic? The general mood among fund managers is more like 'playing dead,'" said He Qi, portfolio manager at Huatai Pinebridge Fund Management.

Telecom and technology shares led declines on the mainland, with ZTE Corp. and 360 Security Technology Inc. tumbling more than 9 percent. Tech shares also dropped the most in Hong Kong, following the sector's rout in New York.

Volume on the Hang Seng Index and China's large-cap CSI 300 Index was about 70 percent more than their 30-day intraday average, according to data compiled by Bloomberg. Foreign investors dumped 3.6 billion yuan ($520 million) onshore shares through Hong Kong-China stock links.

"It's been a rough day," said William Wong, head of institutional sales trading at Shenwan Hongyuan Securities HK Ltd. "Institutional investors have been reducing their portfolio, while we see hedge funds shorting in Hong Kong."

A crackdown at Chinese borders on undeclared goods also hurt luxury goods companies, with Prada SpA tumbling 10 percent, the most since September 2017. Jiangxi Ganfeng Lithium Co. dropped as much as 33 percent on its trading debut.

"Negative sentiment is outweighing any positive catalysts, and investors would take any rebound as a chance to sell," said Louis Tse, Hong Kong-based managing director at VC Asset Management Ltd., adding that Shanghai shares may fall further after breaking the key support level. "If we're talking about seeing an end of the tunnel -- I don't think so."

Here's a summary of some index moves:

Hang Seng Index closes at lowest since May 2017 Hang Seng China Enterprises Index drops 3.4%, the most since Feb. 9Shenzhen Composite slumps 6.5% to lowest since September 2014Taiwan's Taiex tumbles 6.3%, worst loss since January 2008

And some stocks:

Tencent extends its record losing streak to a 10th day; AAC Technologies and Sunny Optical were among biggest decliners on the Hang Seng Index, both sliding more than 6.1%BAIC tumbles a record 13% on concern Mercedez-Benz AG may raise its stake in the company, biggest loser on the MSCI Asia Pacific Index; Country Garden Holdings among worst-performing property stocks, down 7.1%PetroChina falls 3.9%, biggest loss in four months, while Cnooc slips 3.8%, most since September

--With assistance from Sofia Horta e Costa and April Ma.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Will Davies, Ron Harui

For more articles like this, please visit us at bloomberg.com

©2018 Bloomberg L.P.

COMMENTS

More Related News

Bill Gates Says Taxing Capital Gains Is the Best Way to Tap
Bill Gates Says Taxing Capital Gains Is the Best Way to Tap 'Big Fortunes'

"We only collect about 20 percent of GDP and we spend like 24 percent of GDP. Proposals have circulated recently for the richest Americans to again face a top marginal tax rate of 70 percent, as they did during much of the 1970s before it was lowered by President Ronald Reagan, and for other wealth-focused measures to be taken to address rising income inequality in the U.S. "If you go about doing this additional collection, of course you want to be progressive, you want the portion that comes from the top 1 percent or top 20 percent to be much higher," he said.

Email Address Given to Ocasio-Cortez Beau Sparks Heated Exchange
Email Address Given to Ocasio-Cortez Beau Sparks Heated Exchange

"While you were having a nice Valentine's Day, @AOC decided to put her boyfriend on staff -- drawing a salary on the taxpayer's dime. Nice to see her adapting to the swamp so quickly," the conservative magazine's Luke Thompson said on his Twitter feed. Other conservative voices piled on, with Katrina Pierson, an adviser to President Donald Trump's re-election campaign, who suggested that "her jobs for everyone starts with her boyfriend.

U.S. Appeal for NATO Personnel in Syria Brushed Off by Spain
U.S. Appeal for NATO Personnel in Syria Brushed Off by Spain

Vice President Mike Pence told reporters at the Munich Security Conference that the U.S. is asking NATO members and other partners to provide "the resources and the support and the personnel" required to prevent a resurgence of Islamic State once U.S. operations conclude. "Requests between countries aren't made in press releases or conference comments," Spain's Josep Borrell said at a briefing in Munich on Saturday.

House Democrats to Investigate Trump
House Democrats to Investigate Trump's Emergency Declaration

The committee, led by Democrat Jerrold Nadler of New York, asked the White House to make available for a hearing administration staff involved in the decision that redirects about $7 billion in the federal budget to construction of a wall on the U.S.-Mexico border.

The Ocasio-Cortez Party Turns Amazon
The Ocasio-Cortez Party Turns Amazon's NYC Plans Into HQ0

Amazon's decision to pull out of a planned mega-campus in Long Island City, Queens, is more than a loss for Cuomo. Cuomo and New York City Mayor Bill de Blasio-two Democrats who rarely agree on anything-brokered a truce to put together a $3 billion tax break for Amazon.com Inc. that helped secure one half of a second headquarters.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.