Chinese stocks dropped below the lowest levels in last year’s market selloff and headed for a bear market on concern economic growth will slow further and a weakening currency will add to record capital outflows. The Shanghai Composite Index slid 2.4 percent to 2,878.41 at 9:34 a.m. local time. The benchmark index declined below the low of 2,927.29 in August, when a summer rout wiped out $5 trillion.
After rebounding in the fourth quarter as the government took measures to prop up equities, shares have resumed declines as volatility returned. The gauge has fallen 20 percent from the December high and is the worst performer among 93 global benchmark measures tracked by Bloomberg. Investors are selling shares again this year as the central bank allowed the yuan to depreciate and the economy hasn’t shown signs of a pickup. FULL REPORT
