Dubai – Masaader News
Chinese stocks declined in the stock markets, they recorded their worst day in years, according to CNN.
The Shanghai Composite plummeted 7.7% and the Shenzhen Component Index fell nearly 8.5% on their first day of trading after an extended Lunar New Year holiday.
The plunge delivered Shanghai its worst day since August 2015’s “Black Monday,” when global markets were rattled by fears of an economic slowdown in China. Shenzhen, meanwhile, hadn’t recorded a single-day percentage drop this bad since 2007.
China’s currency also fell. The yuan sank 1.6% in onshore trading, dropping below seven to one US dollar in its first day back from the holiday break. The yuan also weakened below the seven mark offshore, where it moves more freely and has been trading since last week.
Authorities knew Monday’s shock was likely inevitable. The People’s Bank of China said Sunday that it would inject 1.2 trillion yuan ($173 billion) into the Chinese markets by buying short term bonds to shore up banks’ ability to lend money. The measure will help maintain “reasonably ample liquidity” in the banking system and keep currency markets stable, the central bank said.