What’s new: Chinese stocks tumbled on Monday after a brief record recovery, as lockdown measures in several major cities weighed on growth sentiment.
The benchmark Shanghai Composite Index (000001.SH) lost 2.61% at the market close, while the Shenzhen Component Index (399001.SZ) shed 3.67%. The benchmark CSI 300 Index of Shanghai- and Shenzhen-listed shares fell 3.09%.
Shanghai’s tech-heavy STAR 50 Index (000688.SH) dropped 3.75% for the day, while Shenzhen’s similar ChiNext Index (399006.SZ) declined 4.2%.
The background: Investors in Chinese equities are taking into account multiple challenges at home and abroad, causing the market to plunge again despite mid-March vows from authorities to support the economy and the battered property and tech sectors.
Record virus infections in Shanghai, a higher-than-expected jump in China factory-gate prices, and surging U.S. Treasury yields all combined to trigger Monday’s losses.
Bloomberg contributed to this report.
Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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