- Key equity gauges fluctuate on Monday after big weekly slide
- Regulator’s vow to stabilize markets on Sunday lacked details
Chinese stocks were caught in another volatile session Monday following last week’s rout, as investors assessed the latest pledges by policymakers to stabilize the slumping equity market.
Shares rebounded in the afternoon as the securities regulator said it will take steps to prevent risks stemming from share pledges. The CSI 300 Index ended the day 0.7% higher after earlier dipping 2.1%. Gauges of small cap shares pared losses but still closed deep in the red.
Some $7 trillion has been erased from the value of equities in China and Hong Kong since their peaks in early 2021 as a long-running property slump, weak economic data and tensions with the US rattle investors. Margin calls and forced liquidation faced by shareholders are emerging as a key risk after the latest pledge of support provided few details on how authorities will stem the rout.
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