22 March 2019

Mainland stocks tumble as crash crunch looms

Investor fears of a looming liquidity crunch resurfaced Thursday as the People’s Bank of China stopped injecting liquidity into the market. The Shanghai Composite Index slumped 1.58 percent to 2,073 points and the Shenzhen Component Index gave up 2.46 percent to hit a four-month low of 7,897.

The Hong Kong stock market was closed for Boxing Day.

Mainland lenders came under selling pressure, with Industrial & Commercial Bank of China (601398.CN) dropping 1.7 percent at one point to send the bank’s stock value below its net asset value (NAV) after calculating for asset appreciation, according to Tencent’s financial news site. China Minsheng Banking (600016.CN) was the only one of the 16 listed mainland lenders not to break the same barrier during the session. ICBC regained some ground to end 1.1 percent down for the day.

Meanwhile, the three-month SHIBOR, a gauge of interbank lending rates, eased to 5.53 percent Thursday.

– Contact the writer at [email protected]



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