(Bloomberg) The Shanghai Composite Index capped its steepest three-week decline since 1992 as measures to shore up Chinese equities failed to stop margin traders from unwinding positions at a record pace. The benchmark equity measure fell 5.8 per cent to 3,686.92 at the close, extending losses to 29 per cent since the June 12 peak.
Chinese shares have erased more than $2.8 trillion of value in three weeks, marking an abrupt end to the longest bull market in the nation's history. Just 39 of the 1,106 stocks in the Shanghai Composite posted gains on Friday, paced by PetroChina Co amid speculation of buying by state-backed funds.
With the Shanghai gauge tumbling more than twice as fast as any other index worldwide, regulators have pledged to investigate market manipulation and unveiled measures to revive confidence among the nation's 90 million individual investors.
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