BEIJING: China’s stocks slumped to a two-week low as concern a slowing economy and weaker currency will spur capital outflows outweighed prospects for more state support.
The Shanghai Composite Index sank 3.4 percent to 3,664.29 at the close, its lowest since Aug. 6. The Hang Seng China Enterprises Index dropped 2.8 percent to a 10-month low at 3:45 p.m. in Hong Kong.
Speculation about the degree of government intervention in stocks has increased since the securities regulator indicated Friday that the state will reduce buying and data showed the richest traders were cashing out. China’s central bank injected the most funds in open-market operations since February as intervention to prop up the yuan strained the supply of cash and drove a key money-market rate to a four-month high.
About 17 percent of mainland-listed shares remain halted.
