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Bloomberg
China’s tech-heavy ChiNext Index saw losses accelerate on Wednesday in another volatile session for mainland stocks.
The index declined as much as 5%, after closing February 25 at the highest level since July 2016. The Shanghai Composite Index dropped 0.8% to close below the key 3,000 point level, joining a global rout. Volume was about 70% higher than the 30-day average for stocks in Shanghai and Shenzhen.
The declines again underscore the vulnerability of an equity rally that’s been built on little more than liquidity.
Chinese indexes had surged partly on hopes that Beijing’s monetary easing and fiscal
support measures would help companies weather economic headwinds.
“There is quite a bit of disagreement over what’s next for ChiNext at this point,†said Huang Huiming, partner at
Nanjing Jing Heng Investment Management Co.