The stock market has been tumbling deeper into bear market territory after Monday’s four-year low. The turmoil comes amid widespread fears over the banking system, as interbank lending rates remain elevated.
The benchmark Shanghai Composite Index took a roller coaster ride on Tuesday. It went down below 19-hundred intra-day, slumping more than 6 percent at one point to the lowest level since early 2009. It clawed its way back in the afternoon, closing at above 19 hundred points. It was down 0.19 percent.
The Shenzhen Component Index shrank 1.2 percent. Banking stocks saw a drastic fall during noon and reversed to minor losses or even gains. Minsheng Bank, which lost 9.9 percent on Monday, came back to close only 0.8 percent lower on Tuesday. Growth-sensitive sectors from materials and energy to real estate were broadly weaker, on fears that the jammed interbank market was affecting fund availability for companies.