Bourse down 0.7% to near 4-month low
The main stock index closed down 0.7 percent Tuesday, led by resource stocks, as a money market squeeze reduced cash flow into the stock market, adding to investor woes as confidence was already hurt by lingering worries over monetary tightening steps.
The benchmark Shanghai Composite Index ended at 2,677.4 points, its lowest closing level since Sept. 30, bringing its year-to-date losses to 4.5 percent.
"A-share market is very weak with China trying hard to curb prices and that's keeping some buyers away," said Jackson Wong, a vice-president at Tanrich Securities in Hong Kong.
The central bank is using reverse bond repurchase agreements and has halted bill sales in an attempt to ease an acute liquidity squeeze that has cut funds in the stock market.
The country's benchmark money market rate, the seven-day bond repurchase rate, rocketed more than 200 basis points Tuesday, heading for its biggest single-day jump, as an acute squeeze lingered despite a huge injection of funds by the central bank.
Source: Global Times
The benchmark Shanghai Composite Index ended at 2,677.4 points, its lowest closing level since Sept. 30, bringing its year-to-date losses to 4.5 percent.
"A-share market is very weak with China trying hard to curb prices and that's keeping some buyers away," said Jackson Wong, a vice-president at Tanrich Securities in Hong Kong.
The central bank is using reverse bond repurchase agreements and has halted bill sales in an attempt to ease an acute liquidity squeeze that has cut funds in the stock market.
The country's benchmark money market rate, the seven-day bond repurchase rate, rocketed more than 200 basis points Tuesday, heading for its biggest single-day jump, as an acute squeeze lingered despite a huge injection of funds by the central bank.
Source: Global Times
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