SHANGHAI, April 24 China's major stock indexes
fell around 1 percent on Monday, extending last week's sharp
drop, after state media signalled Beijing would tolerate more
market volatility as regulators clamp down on riskier forms of
financing and coax companies to reduce debt.
Recent signs of stability in China's economy "have provided
a good external environment and a window of opportunity to
reduce leverage in the financial system, strengthen supervision
and ward off risks," official Xinhua News Agency reported on
"Over the past week, interbank rates trended higher, bond
and capital markets suffered from sustained corrections and some
institutions faced liquidity pressure. But these have little
impact to the stability of the broader environment."
The Shanghai Composite Index fell 1.2 percent to
3,135.15 points by 0221 GMT, after posting its biggest weekly
loss of 2017 last week.
The CSI300 index fell 0.9 percent to 3,435.45
China's insurance regulator said on Sunday it will ramp up
its supervision of insurance companies to make sure they comply
with tighter risk controls and threatened to investigate
executives who flout rules aimed at rooting out risk-taking.
Also over the weekend, China's securities regulator said it
had fined a former Shenzhen bourse official 251 million yuan
($36.5 million) for illegal trades to profit from company IPOs,
underscoring Beijing's drive to root out bad behaviour in
its equities markets.
Investors have also been concerned that China's economy
could lose momentum in coming months as local governments launch
more measures to cool heated propertyprices.
The Hang Seng index in Hong Kong was up 0.2 percent,
to 24,089.75 points.
(Reporting by Samuel Shen and John Ruwitch; Editing by Kim