SHANGHAI, Sept 12 China's blue chip stocks
tumbled the most in three months on Monday, tracking a sharp
retreat in global markets as investors were spooked by talk of a
possible U.S. rate hike next week, sending bond yields up and
pressuring the Chinese currency.
The CSI300 index of the largest listed companies
in Shanghai and Shenzhen fell 1.7 percent, to 3,262.60, posting
its biggest percentage loss since June 13.
The Shanghai Composite Index lost 1.8 percent to
3,021.98 points, booking the worst day since July 27.
Investors were concerned that the U.S. Federal Reserve would
raise interest rates as early as next week, after Boston Fed
President Eric Rosengren said in a speech on Friday that gradual
interest rate increases might be in order with the U.S. economy
at full employment and that low interest rates were increasing
the chance of an overheated economy.
China's state-owned banks sold dollars to keep the currency
stable in the morning trade after the Chinese central bank
sharply weakened its official fixing, two traders told Reuters.
(Reporting by the Shanghai Newsroom; Editing by Shri