China Stocks Drop to Almost 4-Year Low
Created: 2012-09-26 14:14 EST
China’s benchmark Shanghai Composite Index has fallen to its lowest point since 2009 today, as the economy continues to head towards troubled waters.
The index dropped 1.2%, closing at 2,004.2 points. It dived briefly below the 2,000 point key support level, hitting its lowest mark in almost 4 years during the last 5 minutes before trading closed today.
The drop is the latest in a continued decline for China’s stock market this year. The Shanghai Composite Index has fallen by 9% so far.
Analysts say the low may further depress sentiments, leading to more selling by worried investors.
China’s export-dependent economy has been left reeling amidst a global economic slowdown. Retail sales and manufacturing have seen a gradual decline since the last quarter, with economists downgrading overall growth forecasts for the year.
Keeping the economy afloat will be a major challenge for Chinese leaders, as they negotiate a difficult power transition in October.