China stocks plunged on Thursday, while other Asian markets mostly rose.
Chinese stocks fell the most in four months on Thursday, as a selloff swept the financial sector after a unit of China’s sovereign-wealth fund reportedly cut its stakes in state-owned banks for the first time.
In Tokyo, the Nikkei 225 index gained 78.88 points, or 0.4%, to 20,551.46, rising for a 10th day in a row, recording its longest winning streak since 1988.
The yen weakened against the U.S. dollar, which bought ¥123.88, after hitting a 12-year high of ¥124.30 in earlier trading, compared with ¥123.67 late Wednesday in New York.
In Hong Kong, the Hang Seng Index plummeted 626.90, or 2.2%, to 27,454.31, falling the most in more than five months.
Filings to Hong Kong Exchanges & Clearing available Thursday revealed the move by China Central Huijin Investment Ltd., according to local media reports.
Other factors also weighed on markets, including news that several brokers have tightened up their margin-financing requirements in recent days. This includes increasing the amount of cash clients must put down for their deposits, as well as concerns about tighter liquidity ahead of a wave of initial public offerings next week.
Financial stocks suffered a wide selloff in Shanghai and Hong Kong.
Among major Chinese banks, China Merchants Bank Co., Ltd. lost 6% and 3.8% in Shanghai and Hong Kong, respectively. Shanghai-listed shares of state-owned China Construction Bank Corporation sagged 5.9%, while its Hong Kong-traded stock shed 3.7%. ICBC declined 5% in Shanghai and fell 2.8% in Hong Kong.
In Hong Kong, biggest decliners in the broker sector included Guotai Juan International Holdings Ltd. down 4.5%, Southwest Securities International Securities Ltd. off 3.9%, and Citic Securities and Haitong Securities Co. Ltd., both lower by 3.4%.
CHINA
The Shanghai CSI 300 shrank 347.43 points, or 6.7%, to 4,834.01, pulling back from a seven-year closing high after a seven-day bull run.
The sovereign-wealth fund unit sold 300 million Shanghai-listed shares of Industrial and Commercial Bank of China Ltd. and 280 million Shanghai-listed shares of China Construction Bank Corporation on Tuesday, for a combined amount of more than 3.5 billion yuan ($560 million U.S.).
Chinese securities firms also took a hard hit.
In Shanghai, Huatai Securuties Co., Ltd. sank 10%, and Citic Securities Co. Ltd. Haitong Securities Co., Ltd. and Orient Securities Co. Ltd. all dropped more than 9%.
In other markets
In Korea, the Kospi index gained 3.39 points, or 0.1%, to 2,110.89
In Taiwan, the Taiex added 19.30 points, or 0.2%, to 9,712.84
In Singapore, the Straits Times index dipped 7.17 points, or 0.2%, to 3,417.77
In New Zealand, the NZX 50 recovered 19.70 points, or 0.3%, to 5,777.64
In Australia, the S&P/ASX 200 erased 12.17 points, or 0.2%, to 5,713.09
