SHANGHAI: Chinese shares took another tumble Tuesday, defying government efforts to arrest a precipitous fall that has wiped an estimated $3.2 trillion off markets and threatens the world’s number-two economy.
The government over the weekend announced a halt to initial public offerings (IPOs) and moves to pour funds into the market to end three weeks of plunging prices.
Analysts say the heavy-handed intervention throws into question the pace of China’s economic reforms and the ability of the government to deflate what many describe as a stock market bubble.
By Tuesday afternoon, the benchmark Shanghai Composite Index had retreated 2.53 percent, or 95.63 points, to 3,680.28.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, slumped 5.57 percent, or 113.69 points, to 1,928.16.
The Shanghai market closed up 2.41 percent on Monday, in a short-lived rise after the policy package was announced at the weekend, lifted by gains in heavyweight blue-chips which are the main beneficiaries of the government response even as most firms fell.
