China Shares Brush New Low Since Depth of Selloff

21-Aug (Wall Street Journal) — The latest signal of China’s stalling economic growth triggered steep losses across Asian markets Friday as doubts build about Beijing’s ability to get the world’s No. 2 economy back into gear.

Worries about China’s growth in recent days have unnerved investors across Asia, the U.S. and Europe, pressured emerging-market currencies and commodities and driven cash toward safer assets like gold. Analysts say they are on the lookout for fresh stimulus efforts from China, possibly as early as this weekend.

Losses this week in Hong Kong, Taiwan and Indonesia pushed those markets into bear territory, defined as a drop of more than 20% from a recent peak. Shares in Japan fell 3% Friday, logging their biggest weekly loss in a year by tripping 5.3%.

China’s main stock index fell 11.5% this week, pushing near it near the lowest point hit during this summer’s selloff, which had wiped out roughly a third of its value and prompted a major rescue effort by Beijing. The Shanghai Composite Index closed down 4.3% at 3507.74, just a whisker above the summertime low recorded on July 8.

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PG View: There are rumors that the Chinese government was buying shares in an effort to support the market.