Beijing (AsiaNews/Agencies) – Chinese shares plunged again today despite attempts by China’s central bank to stem the fall. Shanghai shares were down by 6.15 per cent, their worst loss in several weeks. In Shenzhen, losses reached 6.58 per cent.
The situation has cast a dark shadow over the country's wider economy. To counter growing concerns over capital flowing out of the country, the People’s Bank of China offered 120 billion yuan (US$ 18.77 billion) in short-term loans to commercial lenders in money markets. The cash injection shows that the authorities have to keep supporting the economy.
The drop is due to the extreme volatility in the domestic market. For three consecutive days, the central bank devalued the yuan renminbi, triggering fears of an impending economic disaster.
Although the International Monetary Fund welcomed the realignment, many experts fear that it might just be an attempt to boost exports to prevent some domestic bubbles from bursting.
Meanwhile, shares are also down in the Asia-Pacific region. The MSCI Asia Pacific Ex Japan slipped to its lowest level in two years, down by 18 per cent since April. In Europe, shares are stable.