Chinese stocks tumbled as the nation’s markets resumed trading, capping their worst performance after the week-long October holiday since 2008. The yuan dropped with bond futures.
The CSI 300 Index closed down 4.3 percent in Shanghai, dragged lower by tech companies, after Hong Kong equities tumbled last week. A gauge of large caps saw its biggest loss since January 2016. China’s currency fell as much as 0.5 percent against the dollar to its weakest since mid-August, and futures on 10-year sovereign bonds dropped 0.1 percent.
Chinese investors faced a barrage of negative news from last week, including weak manufacturing data, a close call between a U.S. and a Chinese destroyer, a North American trade deal that’s set to sideline China, accusations of election meddling and a Bloomberg News report that the country spied on U.S. companies. A move by the People’s Bank of China to cut the amount of cash lenders must hold as reserves failed to soothe the market.
Source : Bloomberg