Chinese stocks dive on regulation fears

Chinese stock benchmarks took their biggest one-day tumble in more than a month.

Chinese stock benchmarks took their biggest one-day tumble in more than a month amidst fears that China’s central bank could tighten up their policies, published reports said.
The Shanghai Composite Index today closed down 5.3%, dropping 200.29 points to .3615.87.
The plunge was the biggest since June 4, when the index fell 8.3%.
The Shenzhen Composite Index fell 5.9% to 1015.85.
It is widely expected that the central bank will raise interest rates, hike up banks’ reserve requirement and eliminate tax on interest income on savings deposits—all of which would stifle the flow of funds into the stock market.
Compounding fears over the central bank’s next move were concerns over the loss of liquidity due to a series of big IPOs.
Firms expecting to float shares for the first time next week include the Bank of Nanjin, Bank of Ningbo, technology company Guangdong Ronsen Super Micro-wire and Sichuan Gaojin Food.