China stocks head for steepest monthly loss in two decades

An investor at a brokerage house in Hangzhou on Jan 11.
An investor at a brokerage house in Hangzhou on Jan 11.PHOTO: REUTERS

SHANGHAI (BLOOMBERG) - China's stocks are headed for their biggest monthly loss since 1994 amid waning confidence in the government's ability to manage the country's markets and economy.

The Shanghai Composite Index, which added 0.1 per cent to 2,658.91 at 9:32 am, has plunged 25 per cent in January.

Stocks entered a bear market this month as data showed weakening growth momentum and capital outflows surging to an estimated US$1 trillion last year. Losses were exacerbated by a circuit-breaker programme, which was jettisoned after only four days following a plunge in shares.