China’s stock markets tumbled today to the lowest levels in 13 months and has completely wiped out its surge in the first half of 2015, amid concerns about:
- capital outflows,
- a renewed selloff in oil,
- and caution ahead of the Fed’s monetary policy decision.
The Shanghai Composite Index plunged 6.4 percent to 2,749.79 at the close. All industry groups slumped, ranging from commodity companies to new-economy shares such as technology,
It’s an issue about confidence and there’s no confidence in the market now, (…)
The depreciating yuan and slowing economic growth have been haunting the market for a while. We are less than two weeks from the spring festival and it seems that most investors are in no mood to trade any more.
said Wu Kan, a fund manager at JK Life Insurance Co. in Shanghai.
According to CNBC, news that the People’s Bank of China conducted its biggest daily open markets operation in three years failed to lift sentiment. The central bank injected 360 billion yuan into money markets on Tuesday in an attempt to boost liquidity ahead of the Lunar New Year holiday.
Oil companies such as PetroChina and Sinopec tumbled 5 percent each as U.S. crude oil fell below $30 a barrel on Tuesday.