Stocks fall, despite govt measures

Despite government efforts to shore up stock markets, the benchmark Shanghai Composite Index plunged 2.26 percent Tuesday to close at 2,594.83 point. The Shenzhen Component Index slid 2.2 percent to end at 7,574.99 point.

Combined turnover of the two bourses was 358 billion yuan (US$51.6 billion), down from 422 billion yuan on the previous trading day.

Gold was strong, with many stocks rising the daily limit of 10 percent. Liquor stocks were among the biggest losers, with Jiangsu Yanghe Brewery Joint-Stock Co and Sichuan Swellfun Co losing over 9 percent. The electronics and chemical sectors also fared poorly.

The falls came after two consecutive days of gains after a series of reassuring statements from authorities over the weekend.

But Shenwan Hongyuan Securities said that there is no need for the investors to be overly pessimistic as financial authorities have made it clear they would work toward market stability.