Chinese stocks slump to three and a half year low

Chinese equities have slumped to a three and a half year low, amid concerns additional monetary easing stimulus will be shelved as property prices in the region soared to a fourteen month high.

Property prices rose sharply across 49 of the 70 cities monitored by the government last month, according to Bloomberg data, effectively ending hopes Chinese monetary policy will be eased in the coming months. The Shanghai Composite Index dropped 0.9% to 2,096.46, its lowest level since March 2009, down 14% from its year high in March. The index later recovered losses slightly to close down 0.4% at 2,106.96 points. Chinese inflation had eased to 1.8% in July, giving the government more scope to introduce further easing measures. Last week Chinese Premier Wen Jiabao insisted Chin...