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4 Jun 2015
China stocks drop sharply on margin tightening
FXStreet (Mumbai) - The Chinese equities index extends previous losses and plunged sharply today to fresh three-day lows after more brokerages in China started to tighten margin trading which dampened market sentiments.
The sharp drop was led by Shenzhen's start-up board ChiNext, whose shares slumped 3.7% after small-sized brokerage Golden Sun Securities said on Thursday that to control risks, it would suspend margin financing for purchases of ChiNext shares.
Currently, the benchmark Shanghai composite index trades -3.36% lower at 4745.21, having posted day’s low at 4647.41. The index recovered partial losses largely on the back of strengthening banking sector stocks on expectations that Beijing soon would allow state lenders to introduce more private investors.
Shanghai Composite Technical Levels
The index has an immediate resistance stands at 4945. Meanwhile, support is seen at 4615 levels and from here to 4432 levels.
The sharp drop was led by Shenzhen's start-up board ChiNext, whose shares slumped 3.7% after small-sized brokerage Golden Sun Securities said on Thursday that to control risks, it would suspend margin financing for purchases of ChiNext shares.
Currently, the benchmark Shanghai composite index trades -3.36% lower at 4745.21, having posted day’s low at 4647.41. The index recovered partial losses largely on the back of strengthening banking sector stocks on expectations that Beijing soon would allow state lenders to introduce more private investors.
Shanghai Composite Technical Levels
The index has an immediate resistance stands at 4945. Meanwhile, support is seen at 4615 levels and from here to 4432 levels.