China stocks fell again on Monday after last week’s savage sell-off, but losses were limited by another set of vows by regulators to stabilise the market and signs that state investors are buying into slumping small-caps.
The blue-chip CSI300 Index lost as much as 2.1% before ending up 0.7%, near levels last seen in 2019. The Shanghai Composite Index lost 1%, its sixth straight session of decline.
Last week, the Shanghai benchmark recorded its worst week since October 2018, leading many Chinese investors to vent their frustration and anger via social media, including a blog account of the U.S. Embassy in Beijing.
In an apparent effort to soothe the market, China’s securities regulator vowed over the weekend to prevent abnormal market fluctuations and crack down on “vicious” short selling. On Monday, the watchdog said it would take forceful measures to prevent risks of margin calls.
“The national team should step up efforts to…
