China shares post worst loss in 18 months, cracks 3% on bond selloff

The blue-chip CSI300 index tumbled nearly 3% to 4,103.73 points, its biggest drop since June 13, 2016.

Worries over a sustained bond selloff in China bled into the country's stock markets on Thursday, dealing blue chips their worst one-day loss in nearly 18 months, as investors reacted to the government's latest measures to reduce risks in the financial system.
 
The yield on Chinese 10-year treasury bonds touched a three-year high of 4.03% on Thursday, traders said.
 
The unease comes as the government steps up its deleveraging campaign, most recently with measures aimed at curtailing micro-lending and imposing tighter regulation on asset management businesses.
 
The blue-chip CSI300 index tumbled nearly 3% to 4,103.73 points, its