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Chinese stocks sink to lowest levels since 2014

AFP  |  Shanghai 

Chinese markets plunged to their lowest levels in four years on Thursday following a global rout, with shares in around 1,000 firms falling to their daily limit of 10 per cent.

fell 5.22 per cent, or 142.38 points, to 2,583.46, marking the lowest level since November 2014.

The Composite Index, which tracks stocks on China's second exchange, plummeted 6.45 per cent, or 89.15 points, to 1,293.90 -- its lowest point since September 2014.

"Chinese market already suffered a blow in confidence after Monday and investors were in a very sensitive state of mind," said Zhang Yanbing, with

"So they panicked and overacted today."

It is the second plunge this week for the Chinese mainland market after both and saw a drop of nearly four per cent on Monday.

Other Asian markets also plunged Thursday following the worst session on Wall Street for months after US said the Federal Reserve had "gone crazy" with plans for higher interest rates.

"With the global market rout, mainland shares could not stay safe," said in a research note.

"Interest rate put aside, the Sino-US trade spat is to blame for the October market rout because people are worried the friction will evolve into a political confrontation."

Trading in Chinese companies is suspended when their shares drop or rise by 10 per cent, and around 1,000 fell to the limit on Thursday.

Banks were the biggest losers in Banking giant dropped 2.70 per cent to 5.40 yuan while Construction Bank closed 3.75 per cent lower to 6.68 yuan.

companies also lost ground in plunged by its 10 per cent daily limit to 9.09 yuan while fell 9.37 per cent to 35.98 yuan.

Brokerages also fell. Shanghai-listed retreated 6.07 per cent to 15.17 yuan while Shenzhen-listed plunged by its 10 per cent daily limit to 5.43 yuan.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 15:30 IST