China shares hit 4-1/2-year low as banks sink again

HONG KONG: China shares slumped to their lowest since early 2009, reversing Hong Kong gains on Tuesday morning, with losses accelerating for mid-sized banks as mainland interbank rates started climbing, deepening market jitters.

By midday, the weighted-average seven-day repo rate was slightly higher than it closed at on Monday after the Chinese central bank on Tuesday opted to stand pat at the first of two scheduledopen market operations this week.

At midday, the CSI300 of the leading Shanghai and Shenzhen A-share listings was down 4.8 percent at 2,067.8, its lowest since February 2009. The Shanghai Composite Index dived 3.8 percent to its lowest since January 2009.

Losses of almost 11 percent on the CSI300 this week have pushed its relative strength index to 14.1, suggesting it is at its most technically oversold level since the indicator was started in 2005.