Shanghai: Chinese shares sank today, 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, in a volatile session, came despite an unprecedented effort by the government of the world's second largest economy 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 percent, 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 percent and rising up to 0.93 percent during the day.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, ended down 2.24 percent, 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 percent 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.
Monday's 8.48 percent fall in Shanghai was the biggest drop since February 27, 2007 and sent tremors through global bourses.
Although Chinese equity markets are relatively closed to outside investors, there are worries about the health of the country's underlying economy, which is a key driver of global growth.
On Wall Street the Dow fell 0.73 percent on Monday while London, Paris and Frankfurt also lost ground on China worries.
Asian markets mostly fell again Tuesday but Hong Kong, which is closely linked to the mainland, was 0.71 percent higher in late trade.
After Monday's collapse, the China Securities Regulatory Commission (CSRC) said it would continue to "stabilise" prices.
The state-backed China Securities Finance Corp., tasked with supporting the market, would increase its share holdings, the CSRC said in a statement.
But analysts warned the comments might not be enough without concrete action.
