China shares continue to fall, despite the assurances of the government
After the big crash yesterday (-8.5%), the Shanghai stock market lost 1% today; Shenzhen 1.3%. At least 900 companies have withdrawn from trading after losing 10%. The central bank of China promised to inject 50 billion yuan in the money market, but the production figures do not favour optimism.

 

Hong Kong (AsiaNews / Agencies) - The Chinese stock markets continued to fall today, although to a lesser extent than today, which saw the biggest fall in eight years and in one day.

At the end of the morning session today, the Shanghai stock market was down by 1%, but had started with a fall of 4%. The Shenzhen Stock Exchange fell by 1.3%, but at some point dropped by 5%.

Despite some appreciation in the financial sector, about 900 companies in Shanghai and Shenzhen suspended trading after reaching the daily downside limit of 10 per cent.

Analysts think that this is a sign of widespread pessimism towards the Chinese economy in general and prefer shifting their focus towards save-haven companies. For this reason, the Hong Kong Stock Exchange registered an increase of 1.52%.

The dramatic collapse yesterday was preceded by negative data on industrial production.

China is trying to calm investors, assuring that soon will implement a prudent monetary policy to stabilize the market. China's central bank said it will inject 50 billion yuan (7.27 billion euro) in the money market.

According to some analysts, such interventions are not enough to erase fears. In addition, government measures favour only big State owned companies and penalize small and medium investors.