Posted 1/22/2024, 1:13:54 PM
Chinese stocks drop as banks tighten liquidity to support yuan
- Chinese stocks were down on Monday as major banks moved to support the yuan and tighten liquidity. The CSI 300 fell 1.6% and Hang Seng Index dropped 2.27%.
- U.S.-listed Chinese tech stocks like Alibaba, Baidu, JD.com and Bilibili were also down between 3-5% premarket Monday.
- China's largest brokerage suspended short selling for some clients Friday to prevent further stock market declines.
- Overseas investors have sold about $1.6 billion in Chinese equities so far in 2024 amid economic slowdown.
- Chinese state banks tightened offshore yuan liquidity Monday, selling dollars onshore to prevent the yuan from falling rapidly.