China stocks tumbled more than 6% on Thursday, their biggest one-day loss in a month, as investors booked profits after the market’s recent rebound and awaited policy cues from global leaders gathering in Shanghai for a G20 meeting.
Traders and analysts cited a confluence of reasons for the slide in addition to profit-taking. These include fears of tighter liquidity in the financial system, worries about the cooling economy and anxiety over looming liberalization of initial public offerings (IPOs), which some investors fear could result in a cash crunch.
China’s stock markets have lost nearly half of their value since early June last year and have struggled to recover despite a massive and unprecedented rescue effort by the government and regulators. Read More