After a 2.4% gain Monday’s close, Chinese equities resumed their downward spiral Tuesday despite media reports that brokerages, which promised over the weekend to buy massive amounts of shares, have infused over 128 billion yuan ($20.6 billion) into a fund created to support the market. But these funds benefited mostly the blue chips to the detriment of the small-cap firms.
With the bearish market, hundreds of Chinese-listed firms found a way to escape the rout by having their shares suspended.
Overseas, Greece is given one last chance to present reform measures before an emergency summit of the euro zone leaders later in the day. Read on..
Chinese shares sink. Despite more measures introduced by the government, its agencies, and the infusion of funds into the market through stock purchases, equities remained down. The Shanghai Composite Index finished the session 1.3% lower. The Nikkei closed up 1.3%, while the Hang Seng Index was last seen down 1%, mirroring the performance of Shanghai. CNBC
Hundreds of Chinese firms opt for trade suspension amid market downturn. Since June 29, 651 firms have their shares suspended in Shanghai and Shenzhen bourses. They account for 23% of the total listed firms. On Tuesday alone, more than 200 firms did so to protect their shares from the bearish market. Financial Times (paywall)
Australia’s central bank keeps rate steady at record low. For a second straight month, policy makers at the Reserve Bank of Australia decided to keep its cash rate at 2%. Herald Sun
Court allows Samsung C&T to sell treasury shares to its ally KCC Corp. The court rejected U.S. hedge fund activist Elliot Associates bid to stop the share sale, paving the way for the merger of Samsung C&T and Cheil Industries in this month’s meeting that would, among others, approve the union. Elliot has filed the case in an effort to stop the merger. Reuters
Samsung Electronics 2Q profit below estimate. According to a earnings guidance released Tuesday, Samsung probably had a 6.9 trillion won ($6.13 billion) operating profit in the second quarter, less than the 7.2 trillion won forecast. From a year earlier, profit fell 4%, its seventh straight period of decline on a yearly basis. Reuters
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