China’s stock markets continued their precipitous slide on Tuesday, falling almost two percent despite state regulators’ frantic attempts to stabilize the country’s volatile indices.
Tuesday’s rout came a day after the Chinese bourse’s worst drop in eight years, sending tremors of apprehension across markets worldwide. At market close on Tuesday, the Shanghai Composite Index sat at 3,663 points — more than 600 points lower than where it was just four weeks ago, illustrating the volatility of these markets and Beijing’s failure to stabilize them.
A surge that began earlier this year came to a dramatic turn last month, prompting state regulatory officials to enact drastic policies ranging from interest rate adjustments to stringent restrictions on the selling of shares.
“With Chinese markets heading further south on Tuesday after yesterday’s plunge, the question whether Beijing’s intervention is working gets louder,” market strategist Bernard Aw told the Associated Press.