The Shanghai Composite Index (SCI) dropped by 2.93% on Tuesday in response to news that the China Banking Regulatory Commission (CBRC) is probing illegal fund inflows to the market, the South China Morning Post reported. The SCI dropped 69.946 points to close at 2,319.441. China’s stock market has been the world’s best performer so far this year, rising 27.39%. Analysts said the influx of fresh funds to the market might have been a result of misused bank loans. Under Chinese law, money borrowed from banks is not allowed to be invested in the stock market.
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