Chinese stocks dive most in 7 years
Updated: 2015-01-19 16:07
By Dai Tian(chinadaily.com.cn)
|
||||||||
An investor checks stock index in a localbrokerage firm, at Nantong city, Jiangsu province, Jan 19, 2015. [Xu Congjun/Asianewsphoto] |
Chinese stocks sank the most since 2008 on Monday, led by securities companies, as regulators took measures to punish non-compliant margin trading activities.
The benchmark Shanghai Composite Index plummeted 7.7 percent and closed at 3,116.35 on Monday. CITIC Securities and Haitong Securities slumped by daily limit of 10 percent.
The nation's top two biggest brokerages, along with Guotai Junan Securities, were suspended from lending money and stocks to new clients for three months, the China Securities Regulatory Commission announced on its microblog Weibo on Friday after the market closed.
Nine other securities companies were also punished in this round of investigation for offenses including allowing unqualified investors to open margin trading accounts.
Financial sector crashes
Financial sector crashed on Monday, as the majority of securities and banking stocks lost by the daily limit, including Huatai Securities, Sealand Securities, Bank of China, Communication Bank, Minsheng Bank, Huaxia Bank, CITIC Bank, Ping An Bank and Industrial Bank.
"The announcement has made the market concerned," said Hong Hao, strategist at Bocom International Holdings, said in a note on Monday, adding that margin trading has contributed more than 30 percent of total turnover in Shanghai at its recent peak.
The balance of credit borrowed for securities trading soared to 1.08 trillion yuan ($174 billion) as of Jan 13 from about 400 billion yuan at the end of June, according to Bloomberg.
Moody's maintains a stable outlook on China's banking system, said the rating agency in its latest report on Monday.
- Chinese naval escort fleet visits Germany
- At least 4 killed in clashes in Congo
- UN condemns escalating attacks by Boko Haram
- Israel steps up security for possible Syria airstrike
- Australian police raised terrorism threat to 'high'
- EU to appeal against court ruling that Hamas be removed from terrorist list: official
- 7 things you may not know about Major Cold
- After the American dream breaks
- United Technologies opens 300 libraries in Chinese elementary schools
- New York Philharmonic to celebrate Lunar New Year
- Long Island collectors display Chinese art then and now
- China's Li Na expecting first baby
- Bank, Rockets help out school
- Top 10 trading partners of the Chinese mainland in 2014
Most Viewed
Editor's Picks
Tale of two cities |
China's 2014 diplomacy |
CES: Connected cars trends to watch |
Kung fu star's son sentenced to six months in prison |
CES: Spotlight on Chinese gadgets |
95% of netizens disapprove of removal of cleavage scenes |
Today's Top News
Economic growth edges to 24-year low of 7.4%
Drive against terrorism in Xinjiang shows result
China: Pet-food products removal not a judgment
Visitors from overseas to get refunds
US to help China find fugitives
Chinese stocks dive most in 7 years
Protest breaks out at HP subsidiary
Marco Polo proves a hit in US
US Weekly
Geared to go |
The place to be |