7 Jul 2015
Shanghai Composite falls as investors ignored support measures
FXStreet (Mumbai) - The Chinese stock markets continued to fall on Tuesday as investors ignored the back-to-back support measures announced by China in recent days.
After a brief pause witnessed on Monday, the Shanghai composite index is currently down 2.48% to 3682.15. The index printed a low of 3585.40. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 4.4%.
Major insurance firms pour money into stocks
As per the official Shanghai Securities News reports, China Life Insurance Co Ltd bought a net CNY 10 billion in index funds, while China Pacific Insurance Group and other insurers each invested more than CNY 1 billion.
The effort managed to ensure the index closed with 2% gains on Monday. However, those gains have been erased today. Traders are also reacting to news that additional 200 companies announced suspension of trading, while there is also news of tightened restrictions on futures trading on a major small-cap index.
The rout in the Chinese markets is slowly gaining attention amid the ongoing Greek issue. Many believe the Chinese issue is far greater threat than the one posed by possible Grexit.
After a brief pause witnessed on Monday, the Shanghai composite index is currently down 2.48% to 3682.15. The index printed a low of 3585.40. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 4.4%.
Major insurance firms pour money into stocks
As per the official Shanghai Securities News reports, China Life Insurance Co Ltd bought a net CNY 10 billion in index funds, while China Pacific Insurance Group and other insurers each invested more than CNY 1 billion.
The effort managed to ensure the index closed with 2% gains on Monday. However, those gains have been erased today. Traders are also reacting to news that additional 200 companies announced suspension of trading, while there is also news of tightened restrictions on futures trading on a major small-cap index.
The rout in the Chinese markets is slowly gaining attention amid the ongoing Greek issue. Many believe the Chinese issue is far greater threat than the one posed by possible Grexit.