Chinese shares sank on Tuesday, a day after Shanghai's steepest slide in eight years, defying renewed government vows of support that analysts warned were not enough to settle nervous investors. The fresh losses came despite unprecedented efforts by the government to shore up prices following a month-long rout.
The recent turmoil followed a stock boom encouraged by the authorities, and their willingness to intervene in the market has raised questions over their commitment to economic reforms. The Shanghai Composite Index fell 1.68 <g data-gr-id="14">per cent</g>, or 62.56 points, to 3,663.00 on turnover of 685.1 billion yuan ( 112.0 billion) after falling as much as 5.0 <g data-gr-id="15">per cent</g> and rising up to 0.93 <g data-gr-id="16">per cent</g> during the day. The Shenzhen Composite Index, which tracks stocks on China's second exchange, ended down 2.24 <g data-gr-id="17">per cent</g>, or 48.39 points, at 2,111.70 on turnover of 618.8 billion yuan.
Some of China's legions of small investors -- who dominate the market, unlike most exchanges worldwide, where institutions are the largest stockholders -- say they are heading for the exits. "I sold 90 <g data-gr-id="19">per cent</g> of my stocks since I saw several reports saying that the market is due for a correction," said Ling Lihui, a manager at a market research company, who sold last week.
`Rs jumps 25p to 63.91 against $
Snapping its 4-day losing streak, the rupee rose by 25 paise at 63.91 against the US dollar on fresh selling of the American currency by banks and exporters amidst renewed foreign capital outflows. The rupee opened higher at 64.14 against Monday’s closing of 64.16 at Interbank Foreign Exchange (Forex) market and hovered in a range of 64.12 and 63.89 before finishing at 63.91, showing a gain of 25 paise or 0.39 <g data-gr-id="33">per cent</g>.