Chinese stocks face biggest monthly loss since 2009

Meltdown of China’s stock market continues to drag economy down despite several support measures imposed to prop up falling shares

Photo by: Reuters
Photo by: Reuters

Trades in China’s share market ended with another fall on Friday, setting the scene for the largest monthly loss in six years. Meanwhile, Chinese regulators announced that they are enacting further investigations on automated trading in order to curb heavy speculative sales. 

The China Securities Regulatory Commission (CSRC) reported that it restricted 24 stock trading accounts upon suspicious bidding activities, which may influence the overall performance of the market. 

The falling stocks, which have declined in value more than 30 percent since mid-June, are also having a negative effect on the growth of the world's second largest economy.  

The biggest contributor to the plunge in China’s stock market was the CSI 300 index, which recorded a 14.7 percent fall this month. The Shanghai Composite Index came in second, weighing down the market with a 13.4 percent drop. Although heavy regulatory pressure was implemented, it wasn't enough to bring about a re-bound in the market.

Analysts believe that even if there is a boost in the market it will be short lived, as investors are expected to act quickly to obtain profits in sudden spikes. Many traders believe the removal of governmental intervention will be more beneficial for the market performance. 

TRTWorld and agencies