Chinese stocks tumble to lowest since last year’s meltdown

China’s benchmark stock index closed below 3,000 on Wednesday, the lowest since last summer’s stock market meltdown, as better exports data and signs of a steadier yuan failed to prevent another round of sell-off.

The Shanghai Composite Index closed down 2.42 per cent at 2,949.60, the lowest since August 26, while the large-cap CSI300 lost 1.86 per cent to finish at 3,155.88.

The Shenzhen Composite Index shed 3.46 per cent to its worst close in three months while the Nasdaq-style ChiNext sank 4.09 per cent.

Louis Tse Ming-kwong, director of VC Brokerage, said he expects stocks to continue to fall for the rest of the week and blamed the day’s sell-down on anticipation of futures options in China expiring on the day, among other factors.

New data showed China’s trade volume fell 7 per cent year on year to 24.59 trillion yuan (HK$29 billion) in 2015, below the government’s 6 per cent target. But monthly trade data for December came in better than expected, with exports in yuan terms jumping 2.3 per cent year on year.

“The recent sell-off in mainland markets does not reflect any change in the fundamental economy,” said Brett McGonegal co-CEO of Reorient Group, citing last week’s aborted introduction of circuit breakers as well as the ongoing intervention in the foreign exchange markets as factors damaging sentiment.