Slide in Chinese shares continues

Chinese shares saw their biggest one-day drop in months Monday, continuing a slide that began when regulators tripled the stamp duty in an effort to cool down the market. Investors in the Shanghai and Shenzhen exchanges largely ignored positive comments, many of them withdrawing from their investment funds, the Financial Times reported. In a reversal of previous efforts, the government tried to encourage investors with official statements about the health of the market and the long-term potential of A-shares. By the end of the day, however, China's benchmark index fell 8.7% to 3,670 points. The total drop to date has been 15%. Only the Chinese market was affected by the drop, however, as many other bourses in the region ended up. China's three official securities newspapers carried editorials Monday saying the overall market trend was positive and that the stamp duty hike was aimed at retail investors, the newspaper reported.