BEIJING: The stocks on the Chinese bourses extend their losing streak into a fourth day today, reflecting signs that stability seen so far this year is losing momentum.
China’s benchmark index, the Shanghai Composite (SHCOMP) slumps -1.10% to 3,160 points, breaking below the key 3,200 psychological mark for the first time in two months. Also, the index posted the steepest decline since December 2016. The bearish momentum in the Chinese equities can be explained by investors’ concerns on fresh regulations introduced by the Chinese regulators in recent weeks, in an effort to contain risks in the financial system.
Moreover, geo-political tensions surrounding a stand-off between the US and North Korea also dampens the sentiment. Also, doubts whether China could sustain the recent rebound in growth weighed on the domestic stocks. Stronger-than-expected first-quarter GDP and March economic data on Monday failed to impress investors, who fear momentum will begin to fade in coming months, Reuters reported. Among the other Asian indices, Japan’s Nikkei 225 index drops -0.19% to 18,383, while Australia’s ASX 200 declines -0.55% to 5,804.
