China’s blue-chip index suffered its worst one-day fall in 17 months on Thursday, as investors cited rising bond yields and tough new regulations targeting corporate debt for scaling back their exposure to equities after a strong performance this year, the Financial Times reports. The yield on 10-year Chinese government bonds rose above 4%, before easing in late trade according to ChinaBond, the latest milestone in a bond rout that has gathered pace over most of this year. Analysts say the bond turmoil reflects the government’s increasing determination to rein in runaway debt growth. The previous two major bouts of global risk aversion were triggered in January 2016 and August 2015 by worries over China’s economic outlook. Last week, five regulators led by the People’s Bank of China introduced the toughest rules yet designed to curb shadow banking. They restrict banks’ ability to buy bonds with borrowed money and to lend to corporate clients through off-balance-sheet channels.