China stocks fall ever deeper despite rescue efforts

HONG KONG (MarketWatch) -- Chinese stocks slid further Thursday morning, extending their recent meltdown despite the government issuing a flurry of measures trying to calm the markets. The Shanghai Composite Index reversed slight gains at the open to fell 2.6%, adding to the previous day's 5.2% plunge. The People's Bank of China on Tuesday injected 35 billion yuan ($5.6 billion) into the banking system via seven-day reverse repurchase agreements, bringing the total net injection of liquidity this week to 50 billion yuan. Earlier, on Monday night, the country's stock exchanges and clearing house had announced a 30% cut to stock-transaction fees effective Aug. 1, while the securities regulator relaxed margin-financing rules, including no longer requiring brokers to sell clients' securities to meet margin calls and allow the rollover of the loans. In Hong Kong, by contrast, the Hang Seng Index edged up 0.2% after returning from a public holiday Wednesday. Macau gaming stocks surged after the city posted posted better-than-expected gambling revenues in June, although they were still down 36% from a year ago. Sands China Ltd. soared 14%, and both Wynn Macau Ltd. and MGM China Holdings Ltd. spiked more than 13%. However, Hong Kong's mainland-China-tracking Hang Seng China Enterprises Index declined 1.7%.

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