Shares drop 3 percent on global sell-off

Zhu Shenshen
Uncertainty over the effect of the COVID-19 pandemic on overseas markets also played its part in a slump in the price of Chinese stocks on Monday. 
Zhu Shenshen

Chinese stocks slumped by more than 3 percent on Monday amid a global sell-off and uncertainty over the COVID-19 pandemic. 

The benchmark Shanghai Composite Index dropped 3.11 percent to close at 2,660.17 points. The Shenzhen Component Index was down 4.52 percent percent to 9,691.53 points.

Trading volume on the two bourses was 687.41 billion yuan (US$98.2 billion), a record low since February 4 and only half og the recent 1.4-trillion-yuan peak.

The GEM (China Growth Enterprise Market) index plunged 4.6 percent to 1,827.05 points, with tech shares leading the drop. 

Almost all industry shares declined, except for some medical and agriculture shares. 

Compared with the sharp fall in global markets, the A-share market showed relative tenacity. The  influence of the pandemic, especially in overseas markets, could not be estimated currently, said analysts. 

In the long term, domestic shares are “undervalued,” said Gou Yugen, chief strategy analyst at Haitong Securities.

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