The Shanghai stock market yesterday hit a 21-month low as investors shrugged off the impact of the Fannie Mae and Freddie Mac bail-outs and a Chinese government attempt to reduce the supply of shares on the market.
The Shanghai composite index finished 2.7 per cent down at 2,143.42 points – the lowest close since December 11 2006. The gains made in 2007, when Shanghai was Asia best-performing market, have been wiped out.
It is now this year's worst-performing market in Asia, with the composite index falling 65 per cent since peaking at 6,124.04 points in trading on October 16 2007.
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