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Chinese regulator investigates share-dumping

Katrina Bishop
Updated
ChinaFotoPress | Getty Images. Hedge funds focused on China suffered around $10 billion in outflows in July, after the Shanghai Composite posted a fall of over 14 percent for the month, new data shows.

China's securities regulator said on Tuesday that it had launched an investigation into Monday's selloff on the country's stock markets, as the rout in Chinese equities continued.

In a transcript of a Q&A posted on its website, China Securities Regulatory Commission (CSRC) said it was "looking into incidents of share-dumping" on July 27.

Read More China stock exodus: When will it end?

China's benchmark stock market slid 8.5 percent on Monday, suffering its biggest daily loss since 2007. The Shanghai Composite (Shanghai Stock Exchange: .SSEC) pared some losses during trading Tuesday to end the day down 1.68 percent.

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Chinese stock markets have had a wild ride this year- with the stock index rising a hefty 60 percent in the first half of the year only to slide 30 percent since a June peak.

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