China stocks slump 4 pct in gloomy start to 2016 on weak factory data

lunes 4 de enero de 2016 00:19 GYT

* CSI300 -4.0 pct; SSEC -3.9 pct; HSI -2.3 pct

* Two major surveys point toward weak factory activity

* Investors worry about a glut of share supplies

* Further losses in yuan add to uncertainty

SHANGHAI, Jan 4 (Reuters) - China stocks started 2016 on a rough note on Monday, slumping 4 percent after weak factory activity surveys soured hopes that the world's second-largest economy will enter the new year on better footing.

Investors also dumped stocks ahead of the imminent expiration of a share sales ban on listed companies' major shareholders, which had been imposed during the market crash last summer.

The blue-chip CSI300 index fell 4.0 percent to 3,581.41 points by the lunch break, while the Shanghai Composite Index lost 3.9 percent to 3,399.91 points.

A 5 percent rise or fall in the CSI300 would trigger China's circuit breaker mechanism, which took effect on Monday.

The heavy selling also spread to Hong Kong. The Hang Seng index dropped 2.3 percent to 21,409.39 points, while the Hong Kong China Enterprises Index lost 2.8 percent to 9,393.07.   Continuación...