Decline in Chinese Stock Market Amid Evergrande Crisis
[Asia Economy Reporter Joselgina] After the Mid-Autumn Festival (Chuseok) holiday, the Chinese stock market reopened on the 22nd and started lower due to bankruptcy rumors surrounding Hengda Group (Evergrande).
On that day, the Shanghai Composite Index opened at 3563.21, down sharply by 1.40% compared to the previous trading day. As of 11:40 AM Korea time, it was trading around 3588, down 0.70% from the previous close.
The Shenzhen Composite Index also started down 1.40% at 2411.83 and was trading near 2424. This reflects market anxiety amid ongoing bankruptcy rumors of the Chinese real estate developer Hengda Group.
The Hong Kong stock market was closed that day. During the Mid-Autumn Festival holiday, the Hong Kong stock market was hit hard by the liquidity crisis of Hengda Group. On the 20th, the Hong Kong Hang Seng Index fell 3.3%. In particular, Hengda's stock price plunged nearly 19% intraday. The closing price dropped 10.24%. On the 21st, the Hang Seng Index closed up 0.51% from the previous close, but Hengda's stock price continued a slight decline that day as well.
Hot Picks Today
As Samsung Falters, Chinese DRAM Surges: CXMT Returns to Profit in Just One Year
- "Most Americans Didn't Want This"... Americans Lose 60 Trillion Won to Soaring Fuel Costs
- Man in His 30s Dies After Assaulting Father and Falling from Yongin Apartment
- Samsung Union Member Sparks Controversy With Telegram Post: "Let's Push KOSPI Down to 5,000"
- "Why Make Things Like This?" Foreign Media Highlights Bizarre Phenomenon Spreading in Korea
On that day, the Taiwan TAIEX Index was trading around 16,853, down 2.45% from the previous close.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
