Key index slides 1.6% as enthusiasm wanes

China's main stock index ended 1.56 percent lower yesterday as doubts emerged over a US bailout plan for the financial sector and initial enthusiasm faded for a Chinese government rescue package for the stock market.

The index's fall was cushioned, however, by gains in several heavily weighted bluechips such as PetroChina, on signs that the government would increase its holdings of their shares. The benchmark Shanghai Composite Index closed at 2201.51 points, off its low of 2181.96.

Falling stocks in Shanghai overwhelmed gainers by 838 to 94, while turnover in Shanghai A shares was moderate at 77.33 billion yuan, down from Monday's 113.2 billion yuan.