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Sell off hits China stocks in Shanghai

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decline_7 May 25, 2011 (Chinavestor) Chinese stocks were looking for direction in Asia on Wednesday. The Hang Seng Index (INDEXHANGSENG:.HSI) advanced 16.5 points or 0.1%. But stocks experienced a broad sell-off in Shanghai, sending the Shanghai Composite Index (SHA:000001) 24.9 points or 0.9% lower for the day. Stocks that fell outnumbered those that advanced ten to one among the 50 largest components of the index.

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Chinese ETFs eked out some gains yesterday but short term outlook is weak. The problems of the euro zone continue to pressure the markets, sending investors to look for safety in treasuries and commodities.

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