Stocks hit 4-year lows, but don’t panic

Source: Xinhua | 2018-10-17

CHINA’S stock markets hit four-year lows yesterday as external uncertainties weakened investor sentiment.

But analysts warned against panic selling, saying government reforms — from tax cuts to a reduction in reserve requirements for lenders that came into effect on Monday — would ensure stability.

The benchmark Shanghai Composite Index fell 0.85 percent to close at 2,546.33 points. The Shenzhen Component Index closed 1.95 percent lower at 7,298.98 points.

Combined turnover on the two bourses was 236 billion yuan (US$34.04 billion), down from 238.73 billion yuan a day earlier.

Coal, real estate, automobile and petrochemical stocks were among the biggest losers. But gas, water services and banks gained.

Haitong Securities cautioned against panic selling, given the tax cuts already promised by the Finance Ministry and the increased liquidity for lenders. The securities regulatory commission also said it would shoulder the responsibility of protecting investors.