Chinese stocks fell the most in a week after trade data signaled a deepening slowdown in the nation’s economy and sinking crude prices dragged on oil companies. The yuan headed for its lowest close in four years.
The Shanghai Composite Index dropped 1.9 percent to 3,470.07 at the close. Energy and material producers were the worst-performing industry groups after oil plunged to the lowest level in more than six years. PICC Property & Casualty Co. tumbled the most since July in Hong Kong after American International Group Inc. sold a stake in the insurer. The Hang Seng China Enterprises Index slid for a fourth day, while the yuan dropped after the central bank cut its reference rate to the lowest since Aug. 27.
China’s exports fell for a fifth month and a slump in imports extended to a record 13 months, suggesting six interest-rate cuts and expedited fiscal spending are failing to boost growth. Inflation data on Wednesday is forecast to show producer price deflation deepened in November. The yuan weakened even after figures Monday showed the nation’s foreign-currency stockpile shrank to $ 3.44 trillion as the central bank sold dollars to prop up the currency.
The CSI 300 Index retreated 1.8 percent. The Hang Seng China index fell 1.9 percent at 3:06 p.m., dragged down by insurers, while the Hang Seng Index slipped 1.8 percent.