Chinese stocks slide to two-year low

Chinese stock prices fell to their lowest levels in more than two years, weighed down by lackluster property sales at home and continued uncertainty in the eurozone, Bloomberg reported. The benchmark Shanghai Composite Index fell 1.9% to 2,248.59, a level not seen since March 2009, while the broader CSI 300 Index fell 2.3%. China’s currency also weakened slightly, hitting RMB6.367 to the US dollar. The market decline was sparked by a fall in housing transactions for 27 out of 35 Chinese cities indexed by Soufon Holdings (SFUN.NYSE, 0US.DAX) last week, with steep 60% drops in at least four cities. Share prices were further depressed by news that the eurozone’s new political agreement to bolster growth in the troubled region could underperform. Fitch Ratings predicted a “significant economic downturn” in Europe, which could cut into Chinese exports to that market.