Shanghai Composite and Hang Seng Ignore Stock Aggression Rescue

The benchmark Shanghai Composite and Hang Seng tumbled in early trading since the weekend despite the Chinese government continues to pour stimulus to withstand the fall of the stock market. For the first time China's stock market will get an abundance of capital from local pension fund institutions. On Sunday (23/8), China's cabinet, or State Council institutions allow pension funds to invest in the stock market up to 30%, or about 600 billion yuan ($ 97 billion). Financial Supervisory Commission (FSC) also prohibits investors short selling below the closing price of the previous session, the new rules that apply today.

China's stock market rescue effort still failed to convince investors to survive in China's stock market. Markets seem to expect greater liquidity, forward trimming Mandatory Minimum Giro (RRR), which is expected to be launched before the end of this month. Market participants expect Chinese policy makers can withstand the decline in China's stock market has plummeted nearly 12% last week, its worst weekly performance since June.

All shares in the Hang Seng index traded in the red zone. Financial stocks become a major burden index trading, Hong Kong Exchanges and Clearing down more than 5%. Crude oil market terkerek down area of ​​$ 40 per barrel down weighed on Chinese oil company, CNOOC shares fell by almost 4%.

Shanghai Composite Index opened down 3.83% accompanied by a 3.5% decline in the Hang Seng Index. At 9:45 pm, both indices are increasingly immersed with the Shanghai Composite Index was at 3252.3192 or -7.28% and Hang Seng Index Futures -4.51% in the 21 474 level.