China’s stocks plunged, sending the CSI 300 Index (SHCOMP) down 20 percent from this year’s high.
The CSI 300, representing the 300 biggest companies in the Shanghai and Shenzhen stock exchanges, dropped 4.4 percent to 2,215.05 as of 1:09 p.m. local time. It closed at this year’s high of 2,775.84 on Feb. 6. The Shanghai Composite Index declined 3.3 percent to 2,005.76, adding to an 18 percent loss since Feb. 6. The Hang Seng China Enterprises Index retreated 2.7 percent today.
“The main reason for the bear market is the economic slowdown,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “Whether the bear market continues depends on the government’s ability to strike a balance between maintaining growth and restructuring the economy.”
The nation’s equities have slumped after entering a bull market in February, with losses accelerating this month on concern surging money-market rates will deepen the economic slowdown.
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