China’s stock market today recorded the biggest drop since February 2020, when the pandemic caused strong selling, due to concerns about the covid-19 outbreak in the country and fears regarding restrictions adopted in the capital, Beijing.
The CSI300 index, which brings together the largest companies listed in Shanghai and Shenzhen, dropped 4.94% on the day, while the Shanghai index was down 5.13%.
Both indexes erased gains made since Vice Premier Liu He’s March 16 pledge to support the economy and financial markets.
Hong Kong stocks had the biggest loss in six weeks. The Hang Seng index fell 3.73%, while the China Enterprises Index lost 4.1%.
The yuan also fell to a one-year low against the dollar, extending losses after recording its worst week since 2015. The worsening economic growth scenario has raised concerns among investors that the currency could weaken further.
. In HONG KONG, the HANG SENG index fell 3.73% to 19,869 points.
. In SHANGHAI, the SSEC index lost 5.13% to 2,928 points.
. The CSI300 index, which brings together the largest companies listed in SHANGHAI and SHENZHEN, dropped 4.94% to 3,814 points.
. In SEOUL, the KOSPI index lost 1.76% to 2,657 points.
. In TAIWAN, the TAIEX index registered a drop of 2.37%, to 16,620 points.
. In SINGAPORE, the STRAITS TIMES index fell by 0.64% to 3,339 points.
. In SYDNEY, the S&P/ASX 200 index remained closed.