Mainland markets fall sharply

The Shanghai A share market plunged 3.4 percent on Tuesday, the biggest daily fall in three months. Meanwhile, the Shenzhen stock market fell by 2.9 percent. As CCTV reporter finds out, turnover in the two markets hit a new record high of 437 billion yuan.

Shanghai A share composite index hit a new 3-month high in its morning trading. But in the afternoon, the market saw an unexpected stumble, dropping to below the 33-hundred point. Only 100 shares rose. Shares in medicine, food and beverage, and supermarkets all declined by 5 percent. Heavy-weight shares of China Life, PetroChina, and China Shenhua dropped by over 5 percent. But gold shares still rose boosted by the global gold price hike.

Zhang Gang, Researcher of Southwest Securities said "Turnover grew sharply, suggesting many investors are withdrawing from the market after selling for profits. The small hike over the past 16 trading days since November 2nd has come to an end for now. As the Central Economic Conference is about to be held and future policies are still unclear, investors want to avoid risks. The market could see further adjustment in the short term."

The B share market also saw a sharp decline in afternoon trading. The Shanghai index drop by 7 percent, its largest daily fall since October last year. Shenzhen index fell by 4 percent. Not a single share in the B share market rose.

Zhang Gang said "B share market is open to all overseas investors. So it is affected by overseas investors' capital. Most markets in Asia declined as the United States posted better economic data. Hot money is rushing out of the Asian market and into the US market."

The Growth Enterprise Market also dropped by 7 percent, following the trend of the main board. This was after its good performance on Monday with a record high market value and price-earning ratio. Among a total of 27 shares, 26 fell.