An investor looks through stock information at a trading hall of a securities firm. (Photo/Chinanews.com)
(ECNS) – Chinese mainland stocks took another tumble on Tuesday, with investors suffering an average loss in excess of 10,000 yuan ($1,600) each.
At Tuesday's closing, the Shanghai Composite Index plummeted 3.5 percent, or 175.6 points, to 4,887.4, while the Shenzhen Stock Exchange Component Index fell 3.54 percent to 17,075.93. The total market capitalization shrank by 2.45 trillion yuan from Monday's closing to 67.36 trillion yuan.
According to China Securities Depository and Clearing Corp, there are approximately 215 million A-share accounts, meaning each of the investors may have suffered a loss of more than 10,000 yuan on average by Tuesday's closing.
A total of 23 companies will float shares on the mainland this week, including Guotai Junan Securities Co, which wants to raise 30 billion yuan through its initial public offering, the largest in five years.
Over 6 trillion yuan will be locked up in the subscription process, which may add pressure to liquidity as well as uncertainties to the market, analysts say.
Meanwhile, the China Securities Regulatory Commission has announced revised draft rules to tighten up management of brokerages' margin-trade and short-selling business, which may deal another blow to the market, especially for stocks listed on the ChiNext (Shenzhen's growth enterprise market).
The sell-off may last for an uncertain period of time, analysts warned, adding that there are increasing market expectations that the government may roll out new measures to bolster the market.
