Chinese stocks tumble below critical support, with major banks and tech giants leading the decline.

Chinese Stocks drop below critical support level pic.twitter.com/hoZwgqpoIZ

— Win Smart, CFA (@WinfieldSmart) September 3, 2024

Chinese stocks have indeed dropped below critical support levels recently. The Shanghai Composite Index fell by up to 0.6%, slipping below the crucial support level of 2,800. This decline was led by significant drops in major banks like the Agricultural Bank of China Ltd. and the Industrial & Commercial Bank of China Ltd., each retreating by at least 4%.

This downturn has also affected Chinese firms listed in the U.S., with companies like Alibaba, JD.com, and Baidu experiencing pre-market declines. The broader selloff is attributed to investor disappointment over first-half results and ongoing economic concerns.

Sources:
www.benzinga.com/markets/asia/24/09/40683461/why-alibaba-li-auto-baidu-and-other-chinese-stocks-are-falling-in-pre-market

www.cnbctv18.com/world/chinese-market-csi-300-shanghai-composite-hang-seng-key-support-level-worst-performer-of-2023-18516761.htm

www.investopedia.com/terms/s/support.asp