Chinese Stocks Plunge Amid Regulatory Concerns and Military Parade Conclusion
Chinese stocks fell sharply as investors took profits after surging tech shares were hit by media reports of potential regulatory curbs and the conclusion of a major military parade. The Shanghai Composite and CSI300 Index faced steep declines amid concerns over market overheating and index rebalancing impacts.
Chinese stocks experienced a significant decline on Thursday as investors moved to take profits following a period of surging tech shares. The downturn was triggered by media reports suggesting potential regulatory actions to curb speculation, along with the end of a major military parade in Beijing.
The Shanghai Composite Index, which had reached a 10-year high the previous week, dropped nearly 2% in the morning session, marking its worst trading day in nearly five months. The blue-chip CSI300 Index also lost 2.5%. Bloomberg News reported that Chinese financial regulators are contemplating measures to cool down the stock market frenzy, including the removal of some short-selling limitations.
This news prompted investors to sell off after a 10% jump in China's stock market throughout August, driven by intense trading and record margin financing, raising concerns about overheating. The fall in shares also coincided with Cambricon's significant tumble, contributing to broader market volatility.
(With inputs from agencies.)
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