REFILE-WRAPUP-China markets plunge in record turnover as margin traders take fright
(Corrects to add dropped percentage fall for CSI300 index in paragraph two)
* Chinese stock markets drop over 6 pct
* More brokers tighten margin finance
* Central bank drains interbank liquidity
By Pete Sweeney and Samuel Shen
SHANGHAI, May 28 (Reuters) - China's stock markets plunged on Thursday, with indexes dropping over 6 percent in record high turnover as investors rushed to sell after more brokers tightened margin trading requirements for clients and the central bank drained money market liquidity.
The CSI300 index and the Shanghai Composite Index both slumped in late afternoon trade, ending down 6.7 percent and 6.5 percent, respectively, their worst day since January 19 when markets fell over 7 percent on an earlier crackdown on margin trading. In terms of points shed, the two indexes suffered their heaviest single day loss since 2008.
The Shanghai Stock Exchange saw A share turnover hit 1.2 trillion yuan ($193.57 billion), an all time record high, on the selloff.
In Hong Kong, the Hang Seng Index closed 2.2 percent down, and the China Enterprises Index lost 3.5 percent, and some some major mainland shares were trading at a discount to their Hong Kong counterparts. Continuación...