Chinese Stocks Sink to One-Month Low After G20 Meeting Concludes

Chinese stocks slumped, erasing a monthly advance, following the conclusion of the Group of 20 meeting in Shanghai.

The Shanghai Composite Index dropped 3 percent at 9:53 a.m. local time, with commodity producers and technology companies leading declines. The measure has fallen 1.3 percent in February, after a 23 percent plunge in January. The yuan weakened for a seventh day.

Investors’ focus is shifting to China’s National People’s Congress, which is scheduled to begin on March 5, after finance chiefs from the G-20 agreed to consult closely on foreign exchange markets and reiterated past pledges to refrain from competitive devaluations. Volatility is returning to Chinese stocks, with a gauge of 50-day price swings climbing to the highest levels since November.

Margin traders reduced holdings of shares purchased with borrowed money on Friday, with the outstanding balance of margin debt on the Shanghai Stock Exchange falling to 509.9 billion yuan ($ 78 billion), the lowest level since November 2014.

Source: Bloomberg

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Chinese Stocks Fluctuate as Plenum Concludes; Coal Shares Gain

China’s stocks swung between gains and losses before the conclusion of a top-level Communist Party meeting. Coal stocks advanced, while technology companies dropped.

The Shanghai Composite Index climbed 0.1 percent to 3,379.77 at 9:54 a.m. local time, as five stocks rose for every three that fell. Trading volumes slid 13 percent below the 30-day average ahead of the end of a four-day party plenum that will chart the course of the economy for the next five years. China Coal Energy Co. rose 1.2 percent after the Xinhua News Agency reported the government will cut production of the fuel. China Life Insurance Co., the nation’s biggest insurer, plunged 4.1 percent in Hong Kong after profits tumbled.

 

Source: Bloomberg

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