China: Stocks struggle as regulators try to calm tumbling market

[SHANGHAI] Chinese stocks were mixed on Tuesday as regulators tried to soothe investors' fears of a looming crash after markets plunged more than 20 percent in the last few weeks.

The CSI300 index rose 0.4 per cent to 4,207.5 points by 0138 GMT, but the Shanghai Composite Index lost 0.9 per cent to 4,015.1.

China CSI300 stock index futures for July rose 1.5 per cent to 4,116.8, -82.48 points below the current value of the underlying index.

The Hang Seng index added 0.3 per cent, to 26,039.51 points.

The Hong Kong China Enterprises Index gained 0.7 per cent, to 12,780.86.

China said late on Monday it is preparing to allow pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the sagging equity market.

Separately, a China Securities Regulatory Commission (CSRC) spokesperson said in a blog posting on Monday evening that risks from brokerages' margin financing business are also controllable.

REUTERS