Shanghai index continues to fall

The Shanghai Composite Index continued to fall on Tuesday, hitting 1,888.68 by midday, down 3.8 percent from Tuesday opening amid continued market concern about curbed liquidity.

The index has dropped 8.9 percent since Monday, the largest loss in four years. It has retreated by 18 percent in June.

Financial institutions continued to lead the fall. Founder Securities Co Ltd collapsed to the 10 percent limit. China Minsheng Banking Co Ltd retreated by 7.67 percent and Ping An Bank fell by 9.85 percent.

The CSI 300 Index of the biggest companies in Shanghai and Shenzhen slumped 4.8 percent, extending Monday’s 6.3 percent retreat.