October 11, 2018 / 4:19 AM / 11 days ago

Chinese stocks tumble to multi-year lows after Wall St rout

HONG KONG, Oct 11 (Reuters) - China’s benchmark stock index dived to near four-year lows on Thursday, joining a global equities rout after a tech sell-off battered Wall Street overnight.

Investors sold across the board amid a confluence of factors, including rising interest rates in the United States, a heated Sino-U.S. trade battle as well as IMF warnings about financial stability and growth risks.

The benchmark Shanghai Composite Index lost 4.3 percent in the morning trading session, to reach 2,607.44 points - a level not touched since Nov. 26, 2014, when Chinese stocks were soaring ahead of a 2015 crash.

The CSI300 index fell 4.0 percent to 3,150.21 points, its lowest level since July 2016.

A Shanghai-based trader expects the market will find some support given it has already been losing altitude over several months, while U.S. stocks are falling from a high point.

“Fund managers will find certain stocks very cheap,” he said.

However, there are risk factors for mainland stocks as a simmering China-U.S. trade war continues to hurt the revenues of exporters, which will in turn weigh on the major indices, he added.

An index tracking major energy companies was down 3.9 percent with firms such as Offshore Oil Engineering Co Ltd slumping 10 percent.

Elsewhere, Great Wall Motor Co Ltd dropped 6.2 pct after China’s fifth-biggest sport utility vehicle (SUV) maker posted weaker sales volumes in September.

Hong Kong’s Hang Seng index dropped 3.7 percent, to 25,213.94 points, while an index of mainland companies listed in Hong Kong lost 4.1 percent, to 10,016.25.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 123.95.

A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.

There was net selling of mainland shares to the tune of about 3.5 billion yuan through the connect scheme linking Hong Kong and Chinese markets.

Reporting by Noah Sin, Editing by John Ruwitch Editing by Shri Navaratnam

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