Closer Look: Stock Market Wasn't Burning Down, but CSRC Doused It Anyway

(Beijing) – The A-share market suffered its worst single-day drop in more than six years on January 19 following regulatory actions aimed at curbing trading with borrowed money.

The benchmark Shanghai Composite Index fell by 7.7 percent from the previous day, the worst decline since June 2008. The share price of many financial institutions, including banks and securities companies, fell by the daily trading limit of 10 percent.