This Chinese stock index plunged 8% within hours today!

This Chinese stock index plunged 8% within hours today!

China’s CSI 1000 index, which had been under pressure for some time, fell over 8 per cent within hours on Monday. The index plunged nearly 400 points or 8.68 per cent to hit a low of 4,177.94, even as the largecap index such as CSI 100 was up 1.03 per cent at 3,042.52. The CSI1000 index has fallen 27 per cent in January so far. It is down 38 per cent in the last one year.

Monday was the seventh day of consecutive fall for the Chinese stock index. As per a Bloomberg report, as many as 984 of the index’s 1,000 constituents settled lower in the morning session lower. The CSI 1000 index, developed by financial market index provider China Securities Index Co, consisted of 1,000 A-share stocks with small market capitalisation and good liquidity. It is seen as a benchmark of the overall performance of small-cap A-share Chinese stocks.

The fall came even as China’s securities regulator promised prevention of abnormal market fluctuations, after Chinese stocks plunged to five-year lows. The regulator fell short of announcing any specific measure. A Reuters report quoted the Chinese watchdog as suggesting that it will crack down on ill-intended short selling and would encourage long-term capital, and earnestly listen to investors’ voices.

China’s GDP growth data for the fourth quarter recently came in narrowly below expectations, with higher frequency releases suggesting disinflationary forces remained in place in December, and growth momentum was flat despite an increase in government bond issuance and an acceleration in infrastructure investment, SBI Funds suggested in a note.

At home, domestic stock indices plunged in late trade. The BSE Sensex fell 354.21 points or 0.49 per cent to 71,731.42. The BSE Midcap index edged 0.23 per cent lower while the BSE Smallcap index ended 0.33 per cent lowe.

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