Stocks continue to tumble

Shanghai stocks extended their slump on Friday, closing below the 3,100-point level to reach a near four-week low.

The Shanghai Composite Index tumbled 1.2 percent to 3,086.40 points, the lowest since March 29. The smaller Shenzhen Component Index fell 1.28 percent to end at 9,780.82 points, while the blue chip CSI300 index was down by 1.33 percent to 3,889.27 points.

Turnover on the two major bourses totaled 624 billion yuan (US$92.67 billion), shrinking sharply from the 733.38 billion yuan in the previous session. 

Almost all sectors posted declines, with only the communications industry and computer shares rising slightly, according to Wind Information. Shares of over 2,500 companies listed on the A-share market ended lower, of which nearly a hundred plummeted by the 10 percent daily cap.

The accumulated net outflow of funds from the Shanghai and Shenzhen stock connect has exceeded 19 billion yuan in April to date.

Shanxi Securities Strategy said in a note that if the net outflow continues to expand, the index may face larger influence and market sentiment will be affected.

The agriculture, forestry, animal husbandry and fishery industries led the drop. Xinjiang Tianshan Animal Husbandry Bio-Engineering Co, Luoniushan Co and Jiangsu Lihua Animal Husbandry Co all took a nosedive by the daily limit of 10 percent.

Electrical equipment shares also dropped, with stocks of seven A-share companies sinking by the maximum 10 percent.

Stocks related to the poultry industry retreated from the rally in the previous session. Guangdong Guangdong Holdings Co lost by the daily cap, and Henan Huaying Agricultural Development Co and Shandong Yisheng Livestock & Poultry Breeding Co both shed over 8 percent.

Iron and steel firms, the home appliance sector and automobile shares were also among the big decliners.

For the week, the Shanghai Composite Index plunged by 5.64 percent, the biggest weekly decline in over six months. Total turnover on the Shanghai bourse shrank to 1.55 trillion yuan from 1.71 trillion yuan last week.