China shares decline.
Decline in China equities while Hong Kong stocks reached highs last seen during the 2008–2009 global financial crisis as overnight losses on Wall Street and the yuan’s further decline weakened already fragile investor confidence. By lunchtime, the Hong Kong benchmark Hang Seng index fell 2.4% to 16,110.98 points, its lowest level since May 2009. The Hang Seng Tech Index fell 3.4% after overnight losses of 7.1% in China stocks listed on the Nasdaq.
China’s stocks performed better amid indications that the government is attempting to stabilise the markets while the Communist Party Congress is still going on.
The Shanghai Composite Index dropped 0.4% while the blue-chip CSI300 Index fell 0.7%.
The yuan resumed its decline against the dollar, which has caused the U.S.-China yield difference to expand, shattering investor confidence in Chinese assets. Offshore
