Chinese shares plummeted to extend the steepest four-day rout since 1996 on concern the government is abandoning market support measures.
The Shanghai Composite Index tumbled 7.6 percent to 2,964.97 at the close, sinking below the 3,000 level for the first time in eight months. The gauge has dropped 22 percent in four days since Aug. 19. More than 700 stocks fell by the 10 percent daily limit in Shanghai on Tuesday, including PetroChina Co., the nation's biggest company by value.
Speculation around the government's intentions has escalated since Aug. 14, after China's securities regulator signaled authorities will pare back the campaign to prop up share prices as volatility falls. Officials should wind down the stock market support program even if prices continue to decline, according to a front-page commentary in the state-run Economic Information Daily on Tuesday.