China Market falls on concerns about the struggling economy

The Mainland China stock market continued slide on Tuesday, 05 January 2016, after hitting 7% lower circuit yesterday, as weak factory activity surveys and falls in the yuan rekindled concerns about the struggling domestic economy. Investors also dumped stocks ahead of the imminent expiration of a share sales ban on listed companies' major shareholders. Market losses were, however, limited, helped by the China's central bank injection of 130 billion yuan (almost $US20 billion or $28 billion) in cheap loans in a bid to stabilise the nation's rocky financial system and talk of an extension of a selling ban for major investors and of direct intervention by state-controlled funds to prop up the market. Chinese stock market regulators also signalled that they are considering adjusting so-called 'circuit breakers' that halt trading when there are steep falls on the share market. The Shanghai Composite Index dropped 0.26%, or 8.55 points, to close at 3287.71. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 1.86%, or 39.38 points, to close at 2079.77. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, lost 3%, or 74.51 points, to close at 2416.73.

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