Chinese stocks drop as Beijing's support measures disappoint

Chinese stocks fell ​on Tuesday as investors dumped ​energy and technology shares, disappointed ‌by regulators' ​slew of measures designed to arrest a market slide. The blue-chip CSI300 Index and ‌the benchmark Shanghai Composite Index both dropped roughly 1% in early trade, giving up Monday's gains. Hong Kong benchmark Hang Seng was roughly flat.

Chinese ‌regulators on Monday rolled out a handful of measures, from ‌conducting swap operations to upgrading a lending facility for stock buybacks by listed companies, as part of efforts to stabilise struggling capital markets. The policy rollout ⁠came after ​an 8.5% ⁠slump in the CSI300 in October, its worst monthly performance in more than ⁠a decade, as a selloff in technology stocks weighed on sentiment.

“These measures ​were below expectations," said Chen Jiande, fund manager at Fujian ⁠Tianlang Asset Management Co. "Many investors in battered tech shares are taking advantage of ⁠any ​rebound to rush out."

The tech-focused STAR Composite Index dropped 1.6%. Investors also remain jittery over the financial health of state-owned developer ⁠Zhuhai Huafa Group, after media reported it was seeking extensions on some ⁠bank ⁠loans.

Government bond yields held steady in early trade, with the 10-year and 30-year notes edging down about 0.3 ‌basis ‌points each.