Chinese stock markets resumed their sell-off, falling sharply on Tuesday despite recent efforts by the government to slow the pace of the decline.
Hong Kong‘s Hang Seng index fell 2.3% while the Shanghai Composite shed 1.8%. Property stocks were among the biggest fallers.
Hang Lung Properties (OTC:HLPPY) was the worst-performing stock, down 8.4%, while Longfor Properties (OTC:LGFRY) shed 6.3%.
Shares in what was once China’s leading property developer China Evergrande remained suspended from trading at HK$0.16 after falling around 21% on Monday following a court liquidation order.
Short Selling Ban
Promises of government support helped lift the markets a little last week, and the Hang Seng made a notable 4.2% recovery.
On Monday, the news of Evergrande’s eventual demise — having been a zombie stock for several years — may have already been priced into the markets, as the response from investors was muted.
Some believed that a ban on short selling announced on the weekend, may have ...
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