China's stocks dip 6% ahead G20 gathering
On Thursday, Chinese stocks dropped abruptly amid constant worries regarding the health of China’s economy. Additionally, global leaders are going to meet tomorrow for the Group of 20 gathering in Shanghai.
The Shanghai Composite Index traded at 2751.15, 6.1% dip. Stocks in construction, military defense, and computer manufacturing went down on profit taking.
Apart from that, the Shenzhen Composite Index sagged 7.2%, while Chinese Nasdaq-style ChiNext board fell 7.5%.
Elsewhere in the region, stocks demonstrated mixed performance. For instance, the Hang Seng Index decreased 1.3%, while Australian S&P/ASX 200 went up 0.1% and Japanese Nikkei Stock Average soared 1.4%. South Korean Kospi surged 0.3%.
China’s retail investors haven’t recovered from this year’s stock market disaster, while various institutions all geared toward taking profits once markets recover a little. On Wednesday, transactions in Shenzhen and Shanghai dropped below 600 billion Yuan to 579.6 billion Yuan, thus indicating low risk appetite.
In Shanghai, the abrupt slump comes after the benchmark leapt late during Wednesday’s session. Market participants had been watching for Beijing to disclose its pilot programs directed at improving state-owned enterprises.