In China Shares stumble as oil slips back below $30 a barrel

 

Chinese shares fell in early trade on Tuesday after oil prices dropped again, reviving concerns about global growth and prompting a sell-off in global equities.

The benchmark Shanghai Composite Index was down 2.1 percent at the midsession interval, while the CSI300

index of the largest listed companies in Shanghai and Shenzhen fell 1.8 percent.

After a rebound on Friday and early Monday, U.S. crude prices fell back below $30 a barrel, not far from last week's 12-year lows, ending a couple of days of gains for Wall Street stocks.

China's fickle stock markets have slumped about 18 percent so far this year on concerns about the slowing economy and confusion over the central bank's foreign exchange policy.

Many investors have lost the stomach for the market after a wild ride since last summer, when shares crashed 40 percent. Beijing intervened to stem that rout and orchestrate a recovery of sorts, but anyone who mistook that for a bottom and bought in will have lost their shirt again in January.

"The market is still seeking a bottom, though the pace of decline is getting slower," said Chang Chengwei, analyst at brokerage Hengtai Futures.

"Volume is getting very thin, as there is hardly any fresh inflows, and the process of de-leveraging is continuing."

China's outstanding margin loans - money investors borrow to buy stocks - declined for 16 consecutive sessions to Jan. 22, the longest losing streak on record, with 209 billion yuan ($32 billion) worth of leveraged bets unwound during the period.