October 25, 2018 / 2:38 AM / a month ago

China stocks slide amid global sell-off, despite state support

SHANGHAI, Oct 25 (Reuters) - China stocks resumed their slide on Thursday amid a global sell-off, as fresh market-support measures by the Chinese government failed to ease investor worries about high leverage and the Sino-U.S. trade war.

China’s blue-chip CSI300 index fell 1.3 percent to 3,147.94 points at 2:21 GMT, while the Shanghai Composite Index lost 1.4 percent to 2,567.76 points.

Hong Kong’s benchmark Hang Seng index was down 2.0 percent, to 24,736.59 points.

In the region, Asian shares dived as hundreds of billions of dollars haemorrhaged from global markets after a rout in tech stocks inflicted the largest daily decline on Wall Street since 2011, wiping out all its gains for the year.

A further slide in China stocks could worsen liquidity pressures in a market already strangled by about $620 billion worth of shares pledged for loans.

Investors largely ignored news overnight that government-backed Shenzhen Investment Holding would issue 1 billion yuan of bonds, raising money to support struggling listed firms.

On Thursday morning, China’s banking and insurance regulator published a notice allowing insurance asset management firms to launch dedicated products that provide liquidity support to listed firms in a bid to reduce risks related to pledged shares. (Samuel Shen and Andrew Galbraith; Editing by Sam Holmes)

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