The Shenzhen and Shanghai stock exchanges tested new lows Monday, with the Shanghai composite index down 33.34 points or 2.26% to 1438.74, its lowest level since December 8 last year, when the index dropped to 1436.66. The Shenzhen composite index dropped to 367.44 points, a fall of 2.8%.
In the last two months alone, the Shanghai A-share market has dropped some 20%.
Given the macro-economic uncertainty the slump is not surprising. Fears of an interest rates hike to cool a possibly overheating economy are causing investors to wait on the sidelines.
Symptomatic of the malaise was another new low in the IPO market,...