Another bloodbath on Chinese markets as shares finish lower after weak inflation data
Shares on Chinese markets fell again today, with the Shanghai Composite falling 5.33 per cent, while the Shenzhen Composite finished 6.6 per cent lower, after weak inflation data from over the weekend.
That pushed Hong Kong's Hang Seng down 2.47 per cent, closing at 19,949 points – the first time it has fallen below 20,000 since 2013.
"A holiday in Japan didn't help as liquidity was thin, increasing volatility," said Mic Mills, head of client services at Capital Index.
"It’s how the authorities go about dealing with [weak Chinese growth] that is spooking the markets," added Simon Smith, chief economist at FxPro.
"While they may have plenty of tools at their disposal they are faced with a two pronged problem of pursuing both economic and market reform agendas.
"Global stock markets have had a terrible start to 2016 with the Dow in the US having its worst January start since the index was formed. "
Meanwhile, the FTSE started 0.3 per cent lower, sticking below 6,000 points, after it fell more than five per cent in its first week of trading in 2016 – one of the worst starts to the year in recent memory.