China stocks plummet to 2009 levels

The Shanghai Composite Index fell below 2,000 points for the first time since 2009, as the economic downturn weighs on stocks, Bloomberg reported. The benchmark fell 1.2% to 2,004.17 on Wednesday at the market close, with the figure dipping briefly to 1,999.48 just before trading ended. Trading volume for the day was down 35% from the daily average since January, with only five billion shares were exchanged Wednesday within the index. This quarter, the index is down 9.9%, placing it among the poorest performing global markets. The Shanghai index is valued at an average of 9.3-times estimated earnings compared to an average of 18-times since 2006, according to Bloomberg data. “The market has no confidence in China’s old growth model of investment and exports any more,” said Chief Investment Officer Wang Zheng at Jingxi Investment Management.