Newspapers call for calm as shares crash

A Chinese state-owned securities newspaper urged calm on Wednesday after investors dumped mainland shares for a second day on worries over the impact of tighter government regulations.

Regulatory moves aimed at the education, property and technology sectors sparked heavy selling this week in Chinese markets.

In a front page commentary on Wednesday, the Securities Times said that systemic risks "do not exist in the A-share market overall."

"The macroeconomy is still in a steady rebound stage, and short-term fluctuations do not change the long-term positive outlook for A-shares," the commentary said. "The recent market decline to some extent reflects misinterpretation of policies and a venting of emotion. Economic fundamentals have not changed and the market will stabilize at any moment."

Other major securities dailies echoed the commentary in market reports.

In a front page story citing domestic fund managers, the China Securities Journal said the sell-off was a "structural adjustment," a sustained plunge is unlikely and the market does not face systemic risk. The Shanghai Securities News quoted analysts as saying that the sell-off would not continue, and that the market will gradually stabilize.

"For institutions, the decline brings the opportunity for positioning in high-quality shares," it said.