China shares tumble as investors dump stocks across the board

China,Trade wars,Beijing

The move, the central bank's fourth in 2018, came amid concerns about the economic impact of Beijing's ongoing trade war with Washington.

The selling trumped news that the People's Bank of China had lowered the required reserve ratio (RRR) as it looks to shore up the economy after a series of weak data, while it also battles a long-running trade row with the United States.

Brazil's real currency hit a two-month high and stocks jumped after market-preferred presidential candidate Jair Bolsonaro's strong first-round win on Sunday boosted investor confidence. It was off 0.55 per cent by mid-morning.

The benchmark Shanghai Composite Index slid 3.72%, or 104.84 points, to 2,716.51.

On Friday, Chinese technology stocks listed in Hong Kong slumped on a Bloomberg report that the systems of multiple US companies had been compromised by malicious computer chips inserted by Chinese spies.

"The PBOC will continue to take necessary measures to stabilize market expectations and keep the foreign exchange market running smoothly", it said.

Losses on major indexes in mainland China were as high as 4.8% in a major market rout, with the China A50, which includes major companies from both the Shenzhen and Shanghai indexes, as the biggest loser.

What Brock Holt and the Red Sox said about history-making cycle
Kinsler doubled over a leaping Gardner for a 2-0 lead and Nunez singled on the next pitch for his first RBI of the post-season. The Red Sox attempt to win the series in Game 4, which begins at 8:07 p.m. on Tuesday at Yankee Stadium in New York City.

Sunday's move will inject a net 750-billion yuan (US$109.2-billion) in cash into the banking system by releasing a total of 1.2-trillion yuan in liquidity, with 450-billion yuan of that to offset maturing medium-term lending facility (MLF) loans. "Liquidity is not the issue".

Stocks and bonds traditionally have been in a tug of war for capital, but for the past 10 years bonds have had one arm tied behind their back, said Jack Ablin, chief investment officer and founding partner at Cresset Wealth Advisors in Chicago.

Analysts say the yuan's decline has been driven mostly by China's slowing economic growth and the divergence between USA and Chinese interest rates.

China's IT sector fell sharply today, tumbling over 3.4 per cent in early trading. "The narrowing interest rate differentials between China and the USA will exert more downward pressure on the RMB", wrote Nathan Chow, strategist at DBS Group Research.

The offshore renminbi, which could float freely without a daily trading band like the onshore rate, weakened below 6.93 per dollar on Monday.

Gold fell more than 1 percent as investors sought refuge in the dollar, which has been lifted by recent strong US economic data that has reinforced rate hike expectations. Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan's value, traded at 6.9523, 1.37 percent weaker than the midpoint. That was the biggest drop in nearly a month and led to the redback's lowest dollar value since May a year ago. "In the face of rising trade frictions, moderate yuan depreciation aids exporters and is what the market expects to see", Tang Xiangbin, currency analyst at China Minsheng Banking Corp said, predicting additional United States rate hikes would help strengthen the dollar further.

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