China stocks plunge over 3%

China's stock market plummeted for second straight day on Thursday, 2 July 2015, as investors brushed off the latest measures to temper a sell-off that has put the index into bear territory. The Shanghai Composite Index declined 140.93 points, or 3.48%, to end at 3912.77. The Shenzhen Component Index dipped 5.32% to close at 12924.19. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 3.99% to end at 2649.32. The gauge has tumbled 24% from its June 12 peak, helping wipe out at least $2.4 trillion of value.

Margin traders continued to unwind positions amid doubts over the effectiveness of government measures to support equities. Several favorable policies were rolled out on late Wednesday in response to the plunging stock market. The two exchanges, and China Securities Depository and Clearing Company announced that transaction fees and transfer fees were to be reduced on the Shanghai and Shenzhen stock exchanges. China Securities Regulatory Commission (CSRC), the securities watchdog, announced that stock brokerages were allowed to issue bonds to widen funding channels. The previously strict rules on margin trading business of brokerages were also relaxed by the CSRC.

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