BEIJING: Chinese stocks swung between gains and losses as signs of waning interest by retail investors and margin traders countered speculation of state support for equities.
The Shanghai Composite Index slipped 0.2 percent to 3,656.45 at 10:38 a.m., after gaining as much as 1.6 percent. The benchmark gauge has slumped 12 percent during four days of losses. Air China Ltd. plunged as much as 10 percent as the company resumed trading after announcing a private share sale. A total of 517 companies were still suspended from trading in mainland exchanges Wednesday, or 18 percent of all listings, down from 521 at Tuesday’s close.
China’s securities regulator said Tuesday it’s investigating the stocks selloff on Monday that sent the Shanghai index to its biggest loss in eight years. It’s the latest signal the government won’t allow stock losses to grow even as retail investor interest may be waning. The number of new investors tumbled 76 percent from a peak in May to a record low, while outstanding margin debt in Shanghai slid to the lowest level since March 17. Trading volumes in Shanghai and Hong Kong were more than 30 percent below the 30-day average.
The Hang Seng China Enterprises Index rose 0.6 percent in Hong Kong, while the Hang Seng Index climbed 0.3 percent. The CSI 300 Index slipped 0.4 percent.
The China Securities Regulatory Commission set up a legal enforcement taskforce on Tuesday to check for clues related to the large-scale selling, spokesman Zhang Xiaojun said in a statement on the regulator’s website
