Chinese shares tumble by 5.33 percent, biggest daily fall in four years

Chinese shares closed 5.33 percent lower on Wednesday, the biggest daily fall in four years, as investors dumped shares for profit-taking over concerns for a possible interest rate hike.

The Composite Stock Index on the Shanghai Stock Exchange, which comprises yuan-denominated A shares and foreign-currency B shares, closed at 1,589.55 points, down by 89.58 points, or 5.33 percent.

The drop of the index, the biggest daily dive since Jan. 28, 2002, when it tumbled by 91.93 points, or 6.33 percent.

Analysts attributed the drastic fall to profit-taking by investors amid worries over interest rate hike by China's central bank.

The continuous drastic falls on overseas stock markets in recent days were also a contributing factor, they said.

Source: Xinhua