Chinese stocks fell Tuesday in volatile trading, extending the biggest one-day loss since 2007, as concern grew unprecedented government intervention will fail to shore up equities.
The Shanghai Composite Index dropped 1.7 percent to 3,663 at the close, after sinking as much as 5.1 percent and gaining 1 percent. About three stocks slid for each one that rose. Energy and technology shares slumped, while brokerages led an advance by financial companies. The gauge tumbled 8.5 percent on Monday amid concern a three-week rally sparked by unprecedented government intervention is unsustainable.
Chinese traders reduced leveraged stock bets on Monday by the most in two weeks as the stock plunge erased $613 billion in value. The securities regulator assured investors in a statement after the market closed the government hasn't withdrawn support for equities.