2 Jul 2015
Shanghai Composite drops to three month low
FXStreet (Mumbai) - The rout in the Chinese equities continued on Thursday even though regulators tried to restrict the panic by relaxing margin rules.
The Shanghai composite index currently trades 3.62% lower at 3906.76. The index hit a low of 3877.47 earlier today.
Margin rules relaxed, transaction fees cut
Before the market opened, China's securities regulator relaxed rules on using borrowed money to speculate on stock markets. On Wednesday, the stock exchanges in Shanghai and Shenzhen announced a cut in transaction fees effective Aug. 1.
Still, the sell-off continued. The Chinese markets gained almost 150% from November to June. Since June 12, a correction of more than 20% has been witnessed amid sharp rise in volatility.
The Shanghai composite index currently trades 3.62% lower at 3906.76. The index hit a low of 3877.47 earlier today.
Margin rules relaxed, transaction fees cut
Before the market opened, China's securities regulator relaxed rules on using borrowed money to speculate on stock markets. On Wednesday, the stock exchanges in Shanghai and Shenzhen announced a cut in transaction fees effective Aug. 1.
Still, the sell-off continued. The Chinese markets gained almost 150% from November to June. Since June 12, a correction of more than 20% has been witnessed amid sharp rise in volatility.