Shanghai Stocks Head for Worst Week Since 2009 as Futures Drop

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China’s stock-index futures fell amid concern the government will clamp down on margin trading to avoid bubble risks and valuations have outstripped earnings growth.

Futures on the CSI 300 Index expiring in July, the most active contract, slid 1.1 percent to 4,925 as of 9:18 a.m. local time. The China Securities Regulatory Commission is working on margin-trading risk management rules for securities firms, the 21st Century Business Herald reported, without citing anyone.

The Shanghai Composite Index dropped 3.7 percent to 4,785.36 on Thursday, as initial public offerings drained cash from the market and investors speculated recent gains have gone too far. It has fallen 7.4 percent this week, heading for the biggest weekly loss since 2009.

Source : Bloomberg