China’s stocks extended the biggest two-month tumble since 2008 amid growing concern that government intervention to prop up the market will fail.
Brokerages led a 2.8 percent retreat in the Shanghai Composite Index on Monday after the securities regulator was said to order the industry to boost its contribution to the nation’s market rescue fund. Citic Securities Co. dropped 8.1 percent after Xinhua News Agency reported that company executives were detained on suspicion of insider trading.
Bearish bets in the options market climbed as traders weighed the level of state support before a World War II victory parade this week.
Swings in Chinese markets this month have rattled investors worldwide as they struggle to anticipate policy actions in the world’s second-largest economy. Stocks rallied almost 10 percent over Thursday and Friday on speculation authorities are propping up markets before President Xi Jinping takes the stage at the parade, which the government will use to demonstrate its rising military and political might.
“There is a lot of confusion about purchases of stocks by state-linked funds,” said Gerry Alfonso, a sales trader at Shenwan Hongyuan Group Co. in Shanghai. “Disclosures are very limited so it is impossible to know what they are doing with certainty.”
The Shanghai gauge declined for the first time in three days, losing 93 points to 3,139.10 at 1:02 p.m., taking its decline this month to 14 percent for a second month. The CSI 300 Index retreated 3.2 percent. Hong Kong’s Hang Seng China Enterprises Index fell 1.6 percent. The Hang Seng Index lost 0.8 percent.
The government revived its intervention in equities on Thursday to halt the biggest selloff since 1996. The effort to support markets was part of a broader push to ensure nothing detracts from the parade. China’s financial markets will be shut Thursday and Friday to commemorate the event. Hong Kong’s bourse will be closed on Thursday.
China’s securities regulator asked brokerages to step up their support for share prices by contributing 100 billion yuan ($15.7 billion) to the nation’s market rescue fund and increasing stock buybacks, according to people familiar with the matter.
The China Securities Regulatory Commission gave the order at a meeting with representatives of 50 brokerages on Saturday, which CSRC Chairman Xiao Gang also attended, said the people who asked not to be identified because the meeting hasn’t been made public
.[WSJ] Crises Put First Dents in Xi Jinping’s Power
[FT] China’s problem is the economy itself, not the market sell-off
World to Fed: We’re prepared for U.S. rate hike, so don’t delay
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Baisse à Tokyo
La Bourse de Tokyo a fini lundi en net repli, affectée par une statistique japonaise décevante et des incertitudes quant à la date du relèvement des taux d’intérêt par la Réserve fédérale américaine (Fed).
A l’issue des échanges, le Nikkei des 225 valeurs vedettes a cédé 1,28% (-245,84 points) à 18.890,48 points. Il repart ainsi à la baisse après une semaine mouvementée qui l’a vu chuter lourdement pour cause d’inquiétudes liées au ralentissement chinois, puis s’envoler à compter de mercredi.
Baisse du pétrole
Les cours du pétrole baissaient lundi en Asie sous l’effet de prises de bénéfices après le rebond important de l’or noir en fin de semaine dernière.
Le cours du baril de light sweet crude (WTI) pour livraison en octobre perdait 79 cents, à 44,43 dollars.
Le baril de Brent, la référence européenne du brut, également pour livraison en octobre, cédait un dollar, à 49,05 dollars.
brunobertez 