Shanghai shares tumbled on Friday, taking their losing streak to nine days, as the country’s money rates spiked again and worries about a cash crunch remained in spite of a central bank fund injection.
The Shanghai Composite Index ended down 2 per cent for the day, at 2,084.70 points, and off 5.1 per cent for the week – its biggest weekly drop since the period ended May 27, 2011.
The last time the Shanghai index fell nine straight days was in 1994.
The CSI300 index of the leading Shanghai and Shenzhen A-share listing dropped 2.3 per cent on Friday and 5.3 per cent for the week.
China’s benchmark money market rate climbed to a six-month high on Friday despite attempts by the central bank to calm sentiment. There were signs of a scramble for cash reminiscent of a massive crunch in June.
Chinese financials led losses, with Ping An Insurance down 4.7 pct in Shanghai while China Life declined 3.1 per cent.
(Reporting by Yimou Lee; Editing by Richard Borsuk)