Despite brief rally, stocks slide again

Chinese stocks slumped Thursday from an earlier rally with the Shanghai Composite Index dropping to a near four-year low, as the yuan fell to its lowest against the US dollar in more than 21 months.

The benchmark Shanghai Composite Index tumbled 2.94 percent to close at 2,486.42 points, the lowest level since November 2014. The smaller Shenzhen Component Index also fell sharply by 2.41 percent to 7,187.49 points, and the blue-chip CSI 300 index ended 2.37 percent down at 3,044.39 points.

The yuan weakened to touch its lowest in almost two years, while the US dollar hit a one-week high on signs the Fed may raise interest rates.

All sectors of the A-share market posted losses. Shares of over 100 companies nosedived by the daily limit of 10 percent. Fewer than 300 stocks gained.

PetroChina Co fell 7.92 percent to 8.37 yuan (US$1.21) and China Petroleum & Chemical Corp lost 4.02 percent to 6.21 yuan. Consumer electronics company Netac Technology Co and information technology provider Wonders Information Co both tumbled by the 10 percent limit.