July 28, 2015

"Chinese shares sank more than 3 per cent on Tuesday, as Beijing scrambled once again to stabilise a stock market whose wild gyrations have heightened fears about the financial stability of the world's second biggest economy."

NDTV After a plunge of more than 8 per cent in major indexes on Monday, Chinese regulators said they were prepared to buy shares to stabilise the stock market, while the central bank injected cash into money markets and hinted at further monetary easing. via Thomson Reuters

'Despite that, the CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 3.1 per cent in early trade on Tuesday, while the Shanghai Composite Index lost 3.4 per cent.

'Monday's dramatic slide shattered three weeks of relative calm for Chinese equities, secured through heavy government intervention in which authorities pumped liquidity into the market while effectively barring many investors from selling.

'The rapid sell-off, which saw China's major indexes suffer their biggest one-day loss in more than eight years, may have been partly due to authorities testing the water for withdrawing some of that heavy-handed support.'

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