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China Stocks Fall Again as Government Vows Support

  • VOA News

FILE - An investor looks at information displayed on an electronic screen at a brokerage house in Shanghai, China, June 30, 2015.

FILE - An investor looks at information displayed on an electronic screen at a brokerage house in Shanghai, China, June 30, 2015.

Trading in China was volatile Tuesday but ended lower, a day after the country's stocks suffered their steepest plunge in eight years.

The benchmark Shanghai Composite Index closed down about 1.7 percent, after falling as much as 5 percent after opening. On Monday, the index lost 8.5 percent, the biggest single-day plunge since 2007.

Many Chinese investors have been rattled by rumors that Beijing plans to back off its support for the stock market, which had been recovering for the past two weeks following a month-long sell-off.

The state-run China Securities Finance Corporation on Tuesday stressed it will continue to buy stocks to "stabilize" the market. The People's Bank of China also said it would inject over $8 billion into money markets

The turmoil in China has also affected global investors. European markets on Monday dropped to two-week lows, and U.S. indices were down for the fifth straight session.

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