China Stocks Extend Rout as Traders Lose Faith in State Support

Chinese stocks fell in volatile trading, extending the biggest one-day loss since 2007, as concern grew unprecedented government intervention will fail to shore up equities.

The Shanghai Composite Index dropped 1.7 percent to 3,663 at the close, after sinking as much as 5.1 percent and gaining 1 percent. About three stocks slid for each one that rose. Energy and technology shares slumped, while brokerages led an advance by financial companies. The gauge tumbled 8.5 percent on Monday amid concern a three-week rally sparked by unprecedented government intervention is unsustainable.