China Stock Market Down on Negative News, CNY1.7bn Flow out

The Chinese yuan-denominated A-share market opened lower and then plunged on an array of negative news like the listing of big-cap Metallurgical Corporation of China (SHSE: 601618), subscriptions to companies on the Shenzhen growth enterprises market and additional share offering plans.

The weak performance of index members from steel, real estate and non-ferrous metal mauled the market. The benchmark Shanghai Composite once tumbled to 2,871.65 at the lowest and got bolstered near six-month moving average in the morning.

The A-share indexes on the Shanghai and Shenzhen bourses went up amid volatility after opening of afternoon trading on the robust increase of insurance and electric power stocks as well as the stocks with IOT (Internet of Things) concept.

The Shanghai Composite Index closed up 4.34 points or 0.15 percent at 2,967.01, and the Shenzhen Component Index ended up 67.81 points or 0.57 percent at 12,045.21 intraday.

Up to CNY 1.756 billion fled the market yesterday, including CNY 241 million in net capital inflow from institutional investors and CNY 1.997 billion in net capital outflow by retail investors.