Chinese stocks plunged to 13-month low

Chinese stocks tumbled to the lowest levels in 13 months, dragging down other Asian markets as investors reacted negatively to the renewed decline in oil prices back below $ 30 a barrel.

Shanghai Composite Index closed today’s session with a decline of 6.4% to the level of 2751 points as this is its first close below the psychological level of 2800 points since December 2014 onwards. This represents a decline of  47% of its peaks reached in June 2015-a year. 

ChiNext benchmark closed with a loss of 7.78% and Shenzhen Composite dropped by 7.12%.

Investors remain concerned about the capital outflows fueled by the weaker yuan. Sentiment is quite negative before the upcoming week holiday for the celebration of the Lunar New Year, starting on 7 February.
This provoked a decline in the other Asian markets. Nikkei fell by 2.35%, Hang Seng - by 2.48% and Kospi - by 1.15%.