Shares of Chinese stock market deepened its decline on Tuesday, marking the fourth consecutive day of mass sales. The collapse, which was the sharpest since 1996, is the result of concerns that the government in the country end the measures to support the market.
The main stock market index in Shanghai scored 7.6 percent drop on Tuesday and ended trade at the value 2964.97 points, fell below the threshold of 3000 points for the first time in eight months. For four days from August 19 index lost 22%. Shares of 700 companies fell more than the acceptable daily limit of 10%, and among them was China’s largest company by market capitalization PetroChina Co.
Speculation about the intentions of the government eksalirat from August 14 onwards, after the securities regulator in the country signaled that the authorities will cut measures to support stock prices amid declining volatility. Following the reported collapse of the stock market 8.5% on Monday, the China Regulatory Commission Securities not taken any measures to calm investors, unlike her behavior a month ago when a similar collapse in the market was quickly followed by two official statements, notes Bloomberg . The drop on Tuesday was the seventh decline in the main Shanghai Composite Index more than 6% for the last three months.
“This is panic selling and a lack of confidence,” said Wei Wei from Shanghai Huaxi Securities. “The government will not intervene to save the market again as global auctions are already spread everywhere. This time it will not work,” adds the analyst.