China stocks extend slide on fears gov't scaling back rescue efforts, HK also down

miércoles 19 de agosto de 2015 00:54 GYT

* CSI300 -2.2 pct; SSEC -3.1 pct; HSI -1.0 pct

* Worries deepen that gov't could be scaling back rescue efforts

* Expectations of further yuan weakness also hit confidence

SHANGHAI, Aug 19 (Reuters) - China stocks slumped again on Wednesday, extending Tuesday's 6 percent plunge, as investors dumped shares amid growing worries that the government could be scaling back its rescue efforts for the markets.

Confidence was also shaken by continued weakness in the yuan, which could lead to fresh outflows of capital from the country, and uncertainty over what steps the central bank may take next to support the struggling economy.

The CSI300 index fell 2.2 percent to 3,741.40 points by midday, while the Shanghai Composite Index lost 3.1 percent to 3,631.40 points.

Hong Kong stocks followed mainland markets lower. The Hang Seng index dropped 1.0 percent, while the Hong Kong China Enterprises Index lost 1.5 percent.

"Market confidence was hit the most by signs that the 'national team' is starting to retreat," Zhou Lin, analyst at Huatai Securities said, referring to government funds that bought stocks in early summer to halt a market rout.

China's securities regulator said late last week that the market has normalised and the government would allow market forces to play a bigger role in determining stock prices.   Continuación...