The Hong Kong stock market wrote off nearly three percent in Wednesday trading, while the Shanghai Stock Exchange wrote off two percent. In both cases, it is the biggest daily drop in many months.
Major stock markets in China and Hong Kong have plummeted on concerns about the restrictive economic policies of the Chinese government or the Central Bank of China. The Shanghai Stock Exchange wrote off two percent, the most since last July, when the stock weakened 2.6 percent in a single day. Shanghai’s overall decline this week has already reached 3.6 percent. The Shenzhen Stock Exchange also wrote off 2 percent on Wednesday.
Bad sentiment also spilled over from China to Hong Kong, where the main Hang Seng stock index weakened 2.99 percent. This, for a change, is the deepest one-day drop since last May. A sub-segment of the Hong Kong Stock Exchange involving Only Chinese companies fell as much as 3.36 percent.
The relatively deep downturn in all three major markets in the region was immediately due to the sale of valuable titles, which investors were trying to get rid of before there was an even bigger decline. But that effectively triggered a stock plunge.