Gov't Once Again Tries to Pull Stock Market out of Nosedive

(Beijing) – The government once again tried to stem the fall of the stock market on July 2 amid warnings a crisis could erupt if prices tumbles as leveraged investors are forced to sell.

The benchmark Shanghai Composite Index closed at 4,098 points, down 3.48 percent from July 1. The day's decline was 5.23 percent.

The Shanghai and Shenzhen bourses said later that day they had reached an agreement with the stock market's clearinghouse to cut the transaction fees they charge. The new rates, which will become effective on August 1, are about two-thirds of their current levels.