SHANGHAI: Shanghai stocks ended 1.16 percent lower in volatile trade Tuesday after surging in the previous three sessions on government support, while investors awaited the release of Chinese economic growth data.
The benchmark Shanghai Composite Index fell 45.90 points to 3,924.49 on turnover of 830.1 billion yuan ($135.7 billion). It fell as much as 2.89 percent and rose up to 1.64 percent.
But the Shenzhen Composite Index, which tracks stocks on China’s second exchange, climbed 1.38 percent, or 29.27 points, to 2,149.52 on turnover of 492.0 billion yuan.
After Shanghai fell 30 percent in three weeks from its peak in mid-June, the government last week moved to slow the rout with a police crackdown on short-selling and a ban on big shareholders and company executives from selling stock for six months, adding to earlier measures.
By Monday’s close, Shanghai had risen 13 percent in the previous three trading days.
“It looks like the 4,000-point level is where the government wants the (Shanghai) market to stabilise,” Wei Wei, an analyst at Huaxi Securities, told Bloomberg News. “The market may take some time to consolidate here after the recent run-up.”
