Asia stocks sink as China sell-off spreads

AFP, HONG KONG: Asian equities tumbled Wednesday as a collapse in Chinese shares began to contaminate other markets, and after European leaders slapped Greece with a deadline to submit fresh bailout reform proposals.
With markets buffeted by two global crises, traders ran for the cover of investments considered safe in times of upheaval such as the yen.
Shanghai plunged almost seven per cent and Hong Kong lost 4.74 per cent soon after opening, despite Chinese leaders announcing fresh measures to staunch a correction that has wiped trillions off the country’s markets. By late afternoon Shanghai was down 5.64 per cent and Hong Kong shed 4.78 per cent. Most other regional markets were also hit by the spillover effects, with many hosting companies with links to China.
Tokyo sank 3.14 per cent, or 638.95 points, to 19,737.64, Seoul slipped 1.18 per cent, or 24.08 points, to 2,016.21 and Sydney retreated 2.01 per cent or 111.9 points to 5,469.5.
Taipei shed 2.96 per cent, or 274.05 points, to close at 8,976.11.
“China’s stock market rout is now spreading to other financial markets, creating a sweeping sense of panic and liquidity crunch,” said Zheng Ge, an analyst at Wanda Futures Co. Shanghai is down more than 30 per cent from its closing peak on June 12, when it had risen by more than 150 per cent in 12 months in a borrowing-fuelled frenzy enhanced by hopes for economy-boosting government measures.

Asia stocks sink as China sell-off spreads

AFP, HONG KONG: Asian equities tumbled Wednesday as a collapse in Chinese shares began to contaminate other markets, and after European leaders slapped Greece with a deadline to submit fresh bailout reform proposals. With markets buffeted by two global crises, traders ran for the cover of investments considered safe in times of upheaval such as the yen. Shanghai plunged almost seven per cent and Hong Kong lost 4.74 per cent soon after opening, despite Chinese leaders announcing fresh measures to staunch a correction that has wiped trillions off the countrys markets. By late afternoon Shanghai was down 5.64 per cent and Hong Kong shed 4.78 per cent. Most other regional markets were also hit by the spillover effects, with many hosting companies with links to China. Tokyo sank 3.14 per cent, or 638.95 points, to 19,737.64, Seoul slipped 1.18 per cent, or 24.08 points, to 2,016.21 and Sydney retreated 2.01 per cent or 111.9 points to 5,469.5. Taipei shed 2.96 per cent, or 274.05 points, to close at 8,976.11. Chinas stock market rout is now spreading to other financial markets, creating a sweeping sense of panic and liquidity crunch, said Zheng Ge, an analyst at Wanda Futures Co. Shanghai is down more than 30 per cent from its closing peak on June 12, when it had risen by more than 150 per cent in 12 months in a borrowing-fuelled frenzy enhanced by hopes for economy-boosting government measures.