China stocks plunge to 8-month lows before paring losses
SHANGHAI Aug 25 (Reuters) - China's major stock indexes slumped more than 6 percent to 8-month lows in early trade on Tuesday before paring losses, after a catastrophic Monday that destabilised financial markets around the world.
By 0200 GMT, the CSI300 index was down 4.4 percent at 3,132.26 points, while the Shanghai Composite Index Shanghai composite lost 4.8 percent to 3,057.04 points.
Chinese stocks plunged more than 8 percent on Monday in panic selling, with flagship indexes smashing key support levels and posting their biggest one-day percentage losses since the height of the global financial crisis in 2007.
Stock futures pointed to expectations of further losses. China CSI300 stock index futures for September fell 2.6 percent to 3,053.4, 78.86 points below the current value of the underlying index.
In Hong Kong, the Hang Seng index in Hong Kong reversed early losses and was trading up 1.5 percent.
Still, investor sentiment remained weak.
"Global investors are cannibalising each other. Calling it a market disaster is not an overstatement," said Zhou Lin, an analyst at Huatai Securities.
"The mood of panic is dominating the market ... And I don't see any signs of meaningful government intervention."
The central bank made a large 150 billion yuan ($23.43 billion) injection into the interbank market on Tuesday morning via its regular open market operations. Continuación...