Major Chinese stocks on Friday had their biggest one-day fall since October as losses for global equities rolled on into the Asia session after a policy shift from the European Central Bank set off concerns about global growth. China added to the woes when it reported its biggest drop in exports since 2016.
The CSI 300 index of Shanghai and Shenzhen-listed stocks, under pressure following a weak day on Wall Street, finished the day down 3.97 per cent after official data from Beijing showed China’s exports had dropped almost 21 per cent in February compared with a year ago.
“We find little reason to expect a rebound in the near term on the back of a sluggish global electronics cycle,” said Raymond Yeung, chief economist for greater China at ANZ. He added that weak external demand would “continue to weigh on China’s [first quarter] growth. This requires a stronger dose of policy stimulus to support growth.”