Shares lose ground amid global negativity

Tracy Li
Following a big fall on Wall Street, China's stock markets saw broad-based losses with non-ferrous metals, automakers and the national defense industry leading the decline. 
Tracy Li

China’s A-share markets lost ground on Thursday, following negative global sentiment.

Discouraged by a big fall on Wall Street overnight, the benchmark Shanghai Composite Index tumbled 1.72 percent to close at 3,223.18 points, dragged down mainly by electrical equipment manufacturers, non-ferrous metal firms and tech names.

The smaller Shenzhen Component Index plunged 2.24 percent to finish at 12,816.61, while the ChiNext Index retreated 2.46 percent to 2,535.87 points.

Volume on the two main bourses was 679.3 billion yuan (US$99.5 billion), compared with 660.7 billion yuan in the previous session.

The losses were broad-based, with non-ferrous metals, automakers and the national defense industry leading the decline.

Huaxi Securities Strategy Team said that market adjustment before the upcoming National Day holiday can be mainly attributed to factors such as a seasonal tightening of funds, which leads to shrinking market turnover.

Investors need to pay attention to overseas risk events such as the resurgence of the coronavirus pandemic in Europe and the approaching US election, which may disturb the A-share market, the broker noted.

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