Chinese stocks extended bear-market losses as commodity companies tumbled on slumping raw-material prices and concern a flood of data this week will show a deepening economic slowdown.
The Shanghai Composite Index dropped 0.6 percent to 2,883.37 at 10:34 a.m., culminating in a 21 percent loss since December. Trading volumes slumped more than 30 percent below the 30-day average for this time of day on Monday, while volatility hovered near the highest levels since October after Chinese stocks fell into a bear market for the second time in seven months on Friday. PetroChina Co. and Baoshan Iron & Steel Co. led declines.
China’s stock strategists are bracing for a deeper bear market on waning confidence that the government can manage the country’s transition to a new growth model and to a more freely traded currency. Tuesday’s data are forecast to show gross domestic product for the fourth quarter and full year was below the government’s target, according to a Bloomberg survey of economists.
The CSI 300 Index declined 0.5 percent, while Hong Kong’s Hang Seng China Enterprises Index fell 0.3 percent and the Hang Seng Index lost 0.9 percent.