China Stocks Slump as Selloff Extends into Second Day

China stocks continued their sell-off on Wednesday following a whopping 6 percent plunge in the previous session, underscoring that it won't be an easy return to good times for the country's equity market.

The benchmark Shanghai Composite opened down 2.7 percent at 3,646.75 points. The index closed down 6.1 percent at 3,749.12 points on Tuesday in its biggest daily decline since July 27.

Tuesday's market plunge was attributed by market participants to traders cutting back on expectations of more stimulus for the economy - on the back of better housing market data – and support for the stock market – after the China Securities Finance Corporation said it would not intervene further in the market unless there was unusual volatility and systemic risk.

"Last week, I warned investors to "brace….brace…brace"  another round of weakness in the Chinese equities market was coming," said Lim Say Boon, chief investment officer at DBS Bank. "And I repeat my warning: Don't expect an easy return to good times again for Chinese equities," he said.

Source:- Moneycontrol