China: Stocks tumble in early trade on policy concerns

[SHANGHAI] China stocks fell sharply in early trade on Friday, extending Thursday's losses, as markets struggle to digest a flood of IPOs, tighter cash supply and general anxiety about policy direction.

The CSI300 index fell 2.8 per cent to 4,573.87 points by 0128 GMT, while the Shanghai Composite Index lost 2.8 per cent to 4,399.93 points.

China CSI300 stock index futures for July fell 3.6 per cent, to 4,513.2, -60.67 points below the current value of the underlying index.

In Hong Kong, the Hang Seng index dropped 0.5 per cent, to 27,016.09 points.

The Hong Kong China Enterprises Index lost 1.0 per cent, to 13,330.10.

REUTERS