China’s stocks slumped in volatile trading, led by technology companies, after traders sold shares purchased with borrowed money for a third day.
The Shanghai Composite Index slid as much as 4.4 percent in the last hour of trading, sending a gauge of 30-day volatility to a seven-year high. All 10 industry groups in the CSI 300 Index dropped, with a sub-index of technology companies plunging 6.3 percent for the biggest loss. Beijing Shiji Information Technology Co. and Hundsun Technologies Inc. both fell by the 10 percent daily limit.
The Shanghai Composite tumbled 3.5 percent to 4,527.78 at the close, erasing a gain of 0.7 percent and snapping a two-day, 4.7 percent advance. The gauge posted its biggest loss since the global financial crisis last week on concern valuations had risen to unsustainable levels and a flood of new share sales were sucking funds from existing equities.
The CSI 300 Index lost 3.6 percent. Hong Kong’s Hang Seng China Enterprises Index fell 1.6 percent at 3:30 p.m., while the Hang Seng Index dropped 0.9 percent.