China stocks drop on Monday
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E-mail Xinhua, April 24, 2017
Major Chinese stock indices dropped across the board on Monday amid rising market concerns about strict government supervision over the financial sector.
The benchmark Shanghai Composite Index was down 1.37 percent to close at 3,129.53 points. The Shenzhen Component Index closed 2.16 percent lower at 10,091.89 points.
Total turnover on the two bourses stood at 411.9 billion yuan (about 60 billion U.S. dollars), up from 382.5 billion yuan on the previous trading day.
The ChiNext Index, China's NASDAQ-style board of growth enterprises, ended 1.58 percent lower to close at 1,809.91 points.
China's financial regulators have recently strengthened oversight and issued harsher punishments to remedy shortcomings and promote efficiency, in a sweeping campaign to protect against systemic financial crisis.
On Friday, the China Insurance Regulatory Commission announced enhanced supervision over insurance companies, urging the sector to guard against liquidity, corporate governance and insolvency issues.
China's securities regulator on Friday said it would raise the net capital requirements for futures companies to strengthen settlement risk prevention.
Cement producers and the construction sector were the weakest on Monday, with their sub-indices dropping 4.35 percent and 3.96 percent, respectively.
Five cement companies, including Fujian Cement and Gansu Qilianshan Cement Group, plunged by the daily limit of 10 percent.
China Communications Construction Company dropped 8.22 percent, while China State Construction Engineering Corp. dropped 4.31 percent.
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