The benchmark Shanghai Composite Index dipped 0.8 percent to finish at 3,205 points, and the Shenzhen Component Index lost 2.3 percent to close at 10,549 points.
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Apart from the executives, an official with the China Securities Regulatory Commission (CSRC) and a journalist, were also put under “criminal compulsory measures” for alleged market manipulation and trading violations.
Global stock markets headed lower at the end of a turbulent month that was dominated by concerns over China and the timing of the U.S. Federal Reserve’s future interest rate rise. The NASDAQ-style ChiNext Price Index slid 3.09 per cent, or 64.28 points to trade at 2,017.85.
However, the government does still appear to be intervening in other markets.
Margin traders reduced holdings of shares purchased with borrowed money for a 10th day on Monday, with the outstanding balance of margin debt on the Shanghai Stock Exchange falling by 1.5% to 673.1 billion yuan ($105.5 billion). The large-cap gauge was down 0.6 percent by the midday trading break on Tuesday after climbing as much as 4.7 percent from its intraday low.
“Investors seem to be waiting until the manufacturing PMI figure is released later this week before making significant decisions”. China stocks shed around 12 percent for the month. Some analysts predict that activity shrank at its fasted pace in three years.
In remarks published on Saturday, Premier Li Keqiang defended his government’s handling of the recent financial volatility and added that China would “enact more targeted and responsive macro-regulation to offset downward economic pressure, [and] more robust reform and innovation efforts to energize the market”.
Australia’s benchmark S&P ASX 200 moved off its eight-day closing peak, dragged down by steep losses among financials. “The market is unlikely to pick up anytime soon”. The yen strengthened the most among major currencies with its biggest gain versus the dollar in more than a week.
Eurozone inflation was steady in August at 0.2%.
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The Stoxx Europe 600 Index lost 2.2 per cent, with the volume of shares changing hands about one-third greater than the 30-day average as the United Kingdom market reopened after a holiday. Despite this, key indices have continued to nosedive over the last fortnight.
