China stocks slump again on margin crackdown, policy uncertainty; drag on Hong Kong

viernes 26 de junio de 2015 00:54 GYT

* CSI300 -3.8 pct; SSEC -4.1 pct; HSI -1.5 pct

* Outstanding margin shrinks for 3rd straight day

* Investor worry over policy directions

SHANGHAI, June 26 (Reuters) - China stocks tumbled more than 4 percent on Friday as spooked investors dumped shares as regulators cracked down on risky margin trading and on mounting uncertainty over the direction of Beijing's monetary policy.

The plunge in mainland shares for a second straight day also weighed on the Hong Kong market, which was already under pressure from weak regional and global markets as Greece failed again to reach an agreement with its creditors.

By midday, the CSI300 index was down 3.8 percent at 4,525.76 points, while the Shanghai Composite Index tanked 4.1 percent to 4,344.06 points.

Both indexes are on track to fall over 2 percent for the week, extending last week's 13 percent drop.

If CSI300 "doesn't hold the 4,630 level then it will move to test 5,575 and then 4,470 before having no credible technical buying support left following a massive rally over the last year or so," investment advisor Rivkin said in a note.

Further falls in China stocks "will send ripples throughout Asian markets," Rivkin said.   Continuación...