Chinese stocks fell, with the benchmark gauge entering a bear market, amid growing concern about the country’s resilience to a trade war with the U.S.
The Shanghai Composite Index fell 0.5 percent at the close, taking its loss since a January high to more than 20 percent. Airlines extended a rout as a slumping yuan boosted the cost of their dollar-denominated debt, while property developers also sank.
Investors have largely ignored government measures to support market sentiment, including a weekend reserve-ratio cut and scrutiny on the liquidation of pledged stock, as trade tensions added to concern about Beijing’s deleveraging campaign and weaker-than-expected economic data. The latest stock rout, coming three years after China’s equity bubble burst, has now wiped out $1.8 trillion through Monday since January’s high.
Source : Bloomberg