China’s four largest state banks stepped into the foreign exchange market on Monday, taking coordinated action to halt a slide in the yuan. The move was described by Reuters as a bid to stabilize the currency amid broad corporate and financial market pressure. In the domestic FX market, credit institutions also acted to reduce yuan liquidity outside the mainland by limiting dollar lending, a response tied to ongoing selling of Chinese stocks. (Reuters)
Stock traders watched a wave of selling sentiment whoosh through Hong Kong as Mainland equities faced renewed pressure. The downturn carried over into the Hong Kong market with the Hang Seng China Enterprises Index retreating about 2.4 percent to 5,001.95 points, while the CSI 300 index slipped roughly 1.6 percent to 3,218.9. Tencent Holdings, one of the technology sector’s bellwethers, saw its stock price fall to HK$262.2, reflecting a broader risk-off mood among investors and questions about growth prospects for tech-linked businesses in the region. (Reuters)
The Shanghai Composite Index closed at 2,756.34, marking a 2.68 percent decline. That retreat represented the largest intraday drop for the benchmark since April 2022, underscoring heightened volatility in the Chinese equity market even as authorities sought to preserve stability in the currency and financial system. Market observers noted that the intervention likely helped mitigate a sharper yuan depreciation and anchored sentiment, even as the domestic equity pullback persisted. (Reuters)
Earlier reports highlighted a contrasting mood in Tokyo, where the Nikkei declined to a level that did not reflect the earlier gains seen in certain sessions, illustrating a global market background shaped by divergent drivers across Asia. Investors were weighing the mutual influence of currency policy, stock valuations, and external demand dynamics, with policy signals from Beijing and shifting risk appetites playing central roles in daily price moves. (Reuters)