Mainland Chinese shares have sloped down further despite more measures from the government to boost the sell-off in the volatile market.
Over the weekend، brokerages and fund managers vowed to buy stocks، helped by a state-owned margin finance firm، which in turn would be helped with liquidity from the central bank.
Despite this، the Shanghai Composite was measured below 1.5% at 3،732.13 on Tuesday. That comes even with the presence of signs of heavy money flows into Shanghai’s blue chip stocks.
State media said 21 brokerages had put more than 128 billion yuan ($20.6bn; £13bn) into a stabilization fund to meet their weekend pledges to in order to support the market.
About 57 mutual fund houses were also reported to have started buying equities using 2.16 billion yuan of their own money. However، the significant downtrend in the market is raising concerns about whether policymakers have the ability to stabilize the market. Local reports said more than 200 Chinese-listed firms would halt trading of their shares، in an attempt protect themselves from the falling stock markets.
But Bernard Aw، market strategist at trading firm IG، said he expected authorities to continue to “implement stronger measures until the stock market stabilizes”. In Hong Kong، the Hang Seng index fell 0.8% to 25،039.93.
Source: BBC/Business