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Shanghai Stock Exchange plummets 6.42 percent at closing

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The Shanghai Stock Exchange index, the main indicator of Chinese stock markets, dropped 6.42 percent (188.73 points) on Tuesday to close at 2,749.79, which, added to losses earlier this month, represents a fall of almost a quarter of its value in one month.

After opening with slight losses, the Shanghai benchmark extended losses to almost 7 percent in the last and volatile hour before the close of markets.

The Shenzhen Stock Exchange, another Chinese stock market, also had a similar fate, falling 6.96 percent (708.98 points) to 9,483.55.

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The unstable Chinese stock exchanges collapsed despite an injection of funds by the country’s central bank for the fourth time in the last week and its biggest oneday offering since 2013.

The bank pumped in a total of $67 billion to increase liquidity ahead of the Chinese New Year holidays that start in the second week of February.

Chinese stock exchanges had been relatively stable after they plunged early this month to lose all 2015 gains.

In an attempt to calm the markets, China introduced a new mechanism this month only to suspend it days later for causing the opposite effect to that intended.