Chinese markets ‘seizing up’ as investors hit panic button

China’s tumbling stock market showed signs of seizing up yesterday, as companies scrambled to escape the rout by having their shares suspended, and indexes plunged after the securities regulator warned of “panic sentiment” gripping investors.

Beijing, which has struggled for more than a week to bend the market to its will, unveiled yet another battery of measures to arrest the sell-off, and the People’s Bank of China said it would step up support to brokerages enlisted to prop up shares.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen closed down 6.8%, while the Shanghai Composite Index dropped 5.9%.