Short pain for long-term gain

The Shanghai Composite Index fell 43.62 points, or 1.37 percent, to close at 3,129.53 on Monday, the sharpest drop in more than four months, amid damped market sentiments following a series of tightened measures by regulators.

Some investors have blamed the latest stock market adjustment on the recent sterner regulatory policies adopted by the securities, banking and insurance regulators. The China Securities Regulatory Commission, the top securities regulator, has frequently sought to tackle market malpractices. It even slapped a 3.47 billion yuan ($504 million) fine on a company chairman for stock market manipulation in March, an all-time high for a fine.

The shares of more than 10 companies were suspended after they experienced abnormal price fluctuations following the authorities announcement of the establishment of Xiongan New Area in Hebei province.