China Shares Slump To Biggest Loss Since July, Led By Financials
HONG KONG, Reuters

China shares suffered their biggest daily loss since July on Tuesday, as lukewarm August foreign direct investment accelerated profit-taking ahead of a two-day public holiday this week.

The CSI300 of the leading Shanghai and Shenzhen A-share listings ended down 2.1 percent at 2,427.3 points in its worst daily loss since July 29. The Shanghai Composite Index also sank 2.1 percent, its biggest loss since July 8.

This was also their third-straight daily fall since closing at 14-week highs last Thursday. Both are still up more than 6 percent from an Aug. 23 trough, a day after Beijing approved a Shanghai free trade zone.

Financials, the biggest driver of the recent rally, led Tuesday’s losses, in the second-weakest Shanghai volumes in the past week.

Official data in the morning showed China drew $8.4 billion in foreign direct investment in August, up 0.6 percent from a year ago. Data for August home prices is due on Wednesday.

Market watchers expect mainland markets to stay on the defensive ahead of the Mid-Autumn Festival holiday on Thursday and Friday.

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