SHANGHAI: Chinese stock markets plunged to their lowest levels in four years on Thursday following a global rout.
The benchmark Shanghai Composite Index dropped 5.22 percent, or 142.38 points, to close at 2,583.46, marking the lowest level since November 2014.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, plummeted 6.45 percent, or 89.15 points, to 1,293.90, the lowest point since September 2014.
It is the second dive in Chinese bourses this week after both Shanghai and Shenzhen fell nearly four percent on Monday.
“(The) Chinese market already suffered a blow in confidence after Monday and investors were in a very sensitive state of mind,” said Zhang Yanbing, analyst with Zheshang Securities.
“So they panicked and overacted today.”
Other Asian markets also tumbled Thursday following the worst session on Wall Street for months, as US President Donald Trump said the Federal Reserve had “gone crazy” with plans for higher interest rates.
“With the global markets rout, mainland shares cannot stay safe,” Guangzhou Wanlong Securities said in a research note.
“Interest rate put aside, the Sino-US trade spat is to blame for the October market rout because people are worried the friction would evolve into a political confrontation.” —AFP