BEIJING: Hong Kong stocks started 0.63 percent lower in early trade as fall in Shanghai overshadowed a Wall Street rally, whereas financiers were tensely awaiting the release of Chinese growth data later in the week.
The benchmark Hang Seng Index slipped 189.49 points to 23,914.03 at the open on Monday.
In Shanghai, China’s benchmark stock index plunged 5.88 per cent on Monday morning after regulators cracked down on rule violations for margin trading, which has fuelled an extended rally, analysts said.
The benchmark Shanghai Composite Index slumped 198.41 points to 3,178.09.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, lost 3.39 per cent, or 50.11 points, to 1,428.36.
The China Securities Regulatory Commission (CSRC), the market regulator, said late on Friday that it had suspended three brokerages from opening new margin trading accounts for customers for three months, after rule violations were found in an inspection. Chinese stocks have been on a powerful rise in recent weeks, triggered by an interest rate cut in November and driven by liquidity and margin trading – investors using borrowed funds to trade on the markets with only a small portion of money put down as deposit.
The three named brokers – Citic Securities, Haitong Securities and Guotai Junan Securities – are among the country’s biggest.
shanghai shares start week with losses 25 june 2018
Hong Kong, (UrduPoint / Pakistan Point News - 25th Jun, 2018 ) :Hong Kong and mainland Chinese stocks fell on...
