China markets plunge in record turnover as margin traders take flight

SHANGHAI: China’s stock markets plunged, with indexes dropping over 6% in record high turnover as investors rushed to sell after more brokers tightened margin trading requirements for clients and the central bank drained money market liquidity.

The CSI300 index and the Shanghai Composite Index both slumped in late afternoon trade, ending down and 6.5%, respectively, their worst day since January 19 when markets fell over 7% on an earlier crackdown on margin trading.