The Guardian China’s efforts this week to stem the tide of losses on its main stock market failed on Friday when the Shanghai Composite index plunged a further 5.8%, taking the drop in share values to 28% since their June peak. by Phillip Inman
'Panic selling wiped more than £2tn off the value of Chinese-listed
companies and traders signalled the rout would extend into next week.
'The authorities had cut fees and eased borrowing rules that make it
cheaper to buy shares in the hope it would cheer investors battered by
the relentless selling since 12 June.
'A promise by the main stock market regulator to tackle concerns of
market manipulation, which has sapped investor confidence in recent
days, also failed to halt the slide.
Securities Regulatory Commission, the market watchdog, said it would
launch an investigation into suspected stock market manipulation,
without giving details of how long the probe would take or which
organisations were under suspicion.'