China shares stabilize after drop
2 February 2007
Chinese shares recovered Thursday some of the ground they lost in the past few days following a string of announcements aimed at bursting fears of a bubble. The Shanghai and Shenzhen 300 index dropped 7% on Wednesday, its biggest fall in five years. The Shanghai Composite Index plunged 5% Wednesday and another 2% early Thursday but it recovered later in the day to close down 0.03%, the Financial Times reported. The drop in the past few days may have eased fears of a bubble as the government moved to announce measures to curb speculation and warned against the market overheating. China's markets rose 130% in 2006.