Shanghai Composite drops as banks investigate equity exposure

FXStreet (Mumbai) – Chinese equity markets fell on Thursday on reports that banks are investigating exposure to the stock market from wealth management products and loans collateralised with stocks.

The Shanghai Composite Index dropped 2.20% to 3705.73. The China Securities Journal stated that Chinese banks had been checking their exposure to the stock market.

The weakness in the mainland shares spilled over to Hang Seng index, which fell 0.1% to 24,602.02. As per Reuters, the index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 137.93. Trading was subdued after Beijing reiterated this week its determination to stabilise its equity markets.

Chinese equity markets fell on Thursday on reports that banks are investigating exposure to the stock market from wealth management products and loans collateralised with stocks.

(Market News Provided by FXstreet)