China stocks fall after CSRC warning

The Shanghai Composite Index fell 3.6% yesterday, its worst performance in a month, as investors became increasingly worried about possible regulatory action to dampen China's stock market, the Wall Street Journal reported. The China Securities Regulatory Commission, in a statement, warned mutual fund managers to reduce speculation. "With the stock market becoming more brisk, more and more new investors who lack the awareness of risk are entering and market irregularities keep rising," it said. Even as the SCI fell yesterday, Bank of Communications shares rose 71% in its mainland initial public offering.