SHANGHAI (BLOOMBERG) - China's benchmark index dropped below the 3,000 level on Wednesday (Jan 13), resuming this year's selloff as better-than-expected trade data and government efforts to stabilize the yuan failed to ease investor concerns about the economy.
The Shanghai Composite Index slid 2.1 per cent to 2,960.56 at 2:50 pm, dragged down by telecom and industrial companies. The stocks gauge has slumped 16 per cent in 2016, the world's worst-performing global index.
"Investors have no confidence in this market and they are worried that the economy is still in bad shape in spite of data showing exports rebounded a bit," said Wei Wei, an analyst at Huaxi Securities Co. "They are competing to sell ahead of each other."
The Straits Times Index reversed course and was trading down 0.24 per cent at 2,685.38 as at 3:04 pm.
Earlier, Tokyo shares rebounded sharply to finish higher for the first time in 2016 as the Chinese trade report was seen as good news. The benchmark Nikkei 225 index jumped 2.88 per cent while the broader Topix index of all first-section shares rose 2.86 per cent.