Both of China’s mainland stock exchanges fell to depths not seen since 2014 on Thursday following cues of a global rout prompted by a sell-off in the US.
The Shanghai Composite Index closed down 5.33% at 2,578.58, Caixin reports, while the Shenzhen bourse lost over 6% falling to 7,521.40. The tremors were felt in Hong Kong, where the Hang Seng – an offshore option for many Chinese companies – closed down 3.6% yesterday.
Over 1000 companies hit their daily movement limits, after which trading of the stock ceases. Over Rmb 358 billion ($52 billion) of stocks changed hands on the two bourses, rising 52% from the day before.
Thursday’s chaos brings the Shanghai Composite’s year-to-date loss to the verge of 20%. The index is down 27% from highs in January.