Home Markets China markets slump as crackdowns shatter sentiment, ‘herd mentality’ kicks in

China markets slump as crackdowns shatter sentiment, ‘herd mentality’ kicks in

3

Investors sit in front of a board showing stock information at a brokerage house on the first day of trade in China since the Lunar New Year, in Hangzhou, Zhejiang province, China February 3, 2020. China Daily via REUTERS

  • Hang Seng falls 1.8%, weekly loss largest since March 2020
  • CSI300 down 1.9%; corporate debt market on edge
  • Yuan, Hong Kong dollar sold as cash flows out
  • ‘Herd mentality’ takes hold – stockbroker

Aug 20 (Reuters) – China’s tech stocks slumped to new lows on Friday and Hong Kong’s benchmark index hit an almost 10-month trough, as a constant drip feed of crackdowns crushed investors’ confidence.

The Hang Seng (.HSI) fell 1.8% and itsweekly drop of 5.8% was the largest since the height of the pandemic panic in financial markets in March 2020.

Stocks in Shanghai also fell, while investors sold risky corporate debt and the Chinese currency. The yuan was poised for its biggest weekly loss in two months as investors rushed to safety amid ongoing…

Click here for full article…www.reuters.com