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7/27/15

China: What's fueling the frenzy in China stocks? - by Dhara Ranasinghe

China's benchmark stock market slid 8.5 percent on Monday, suffering its biggest daily loss since 2007, indicating that there is seemingly no reprieve to the violent selling rocking the country's equities.

A sharp fall in commodity prices, weak Chinese economic data and concerns that Beijing may be reluctant to dole out further measures to support beaten-up shares all contributed to the sell-off, analysts said.

Data released earlier on Monday showed China's industrial profits declined 0.3 percent year-on-year in June, compared with a 0.6 percent rise in May.

Read more: What's fueling the frenzy in China stocks?

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