China stocks slid in late afternoon trade, sentiment still fragile

By: | Published: January 13, 2016 1:21 PM

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 1.9 per cent, to 3,155.88, while the Shanghai Composite Index lost 2.4 per cent, to 2,949.60 points.

China stocksChina stocks: The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 1.9 per cent, to 3,155.88, while the Shanghai Composite Index lost 2.4 per cent, to 2,949.60 points. (Photo: Reuters)

China stocks slid in late afternoon trade on Wednesday after a relatively steady morning session, underscoring the fragility of investor sentiment following last week’s rout.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 1.9 per cent, to 3,155.88, while the Shanghai Composite Index lost 2.4 per cent, to 2,949.60 points.

Trading was calm in the morning, amid signs that the yuan was stabilising after intervention by China’s central bank.

Analysts pointed out, however, that trading volume was thin, signalling that many investors were standing on the sidelines and putting money elsewhere.

Latest data show China’s recent stock market rout has further dampened risk taking. Investors have been slashing leveraged bets on stocks, seeking safe haven in bonds and money market funds, and stepping up investment overseas.

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