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    Chinese stocks enter correction territory, says report

    Chinese stocks enter correction territory, says report

    Chinese stocks enter correction territory, says report
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    By CNBCTV18.com  IST (Published)

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    China’s currency too became weaker, with the exchange rate falling 0.4 percent to 6.5241 yuan against the dollar.

    The Chinese stock market dropped considerably this week following concerns that equities are overvalued and vulnerable to rising US bond yields, reported the Financial Times.
    The development comes after the market registered a 12 percent decline on Monday after it registered the record heights recently due to an extended rally fuelled by China’s economic recovery, the report said.
    The report added that the CSI 300 index of Shanghai and Shenzhen-listed stocks dropped 3.5 percent on Monday-- the biggest single-day fall in about seven months. This in turn has aggravated global concerns about inflated asset prices.
    “The shakeout in stocks come after several warnings over asset prices this year. In January, Ma Jun, an adviser to the People’s Bank of China, said the central bank would need to adjust its policy to address the risk of bubbles, in comments that sent stock prices tumbling,” said the report.
    Further, the report stated that China’s currency too became weaker, with the exchange rate falling 0.4 percent to 6.5241 yuan against the dollar.
     
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