Chinese stocks and several other major Asian share indexes plunged in Thursday afternoon trade, though they soon began moving off their lows of the session. The Shanghai Composite Index was down more than 5% at one point before trimming its loss to 3.3%. The more volatile Shenzhen ChiNext Price Index saw a more than 6% dive, with key indexes in Hong Kong and Taiwan also falling. According to several reports, the heavy drop was sparked by news that unlisted Golden Sun Securities had halted all margin financing and short selling for the Shenzhen ChiNext stocks. The selldown also coincided with a selloff in Asian bonds, with Dow Jones Newswires reporting some sovereign yields hitting their highest levels in years. The drop for Asian debt began after a sharp rise in yields on German bunds, the report said.
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