Most Asian Equities Follow China Lower

Asian shares extended their downward spiral, with China’s Shanghai Composite index down more than 3 percent before clawing back loss ground on the back of fresh regulatory support.

China’s banking regulator said Thursday it will use a series of measures to support the stability of the capital markets, such as encourage interbank lending between the country’s margin lender and banks, while permitting financial institutions to renegotiate maturity terms.

In the previous session, Beijing eased rules for insurers to invest in blue-chips stocks, raised margin requirements for short positions against small-cap stocks and warned against “irrational selling”, among other initiatives.