Stock markets in China tumbled on Thursday, led by small-caps, as investors took profits from a solid rebound over the past month and await policy messages from Chinese and other global leaders gathering in Shanghai for a G20 meeting.
The benchmark Shanghai composite index lost 6.4 percent while the Shenzhen component index plunged 7.3 percent.
More than 1,000 stocks on the two bourses tumbled by the daily limit of 10 percent.
The ChiNext Index of growth enterprises was hardest hit, slumping by 7.6 percent.
According to a report, China’s foreign currency reserves dropped for the fourth consecutive month in February, falling $28.75B to $3.2T (the lowest level since 2011), but a slower pace of decline suggested that the recent stability of the currency markets has eased pressure on the central bank to intervene aggressively.
The country’s forex reserves have come under close scrutiny in recent months for clues on the size of capital outflows as well as the ability of policymakers to support the yuan.