UPDATE 1-China steps up support to arrest stock market slide
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By Pete Sweeney and Samuel Shen
SHANGHAI, June 30 (Reuters) - China's efforts to stave off a crash in the world's most volatile stock market showed signs of gaining traction on Tuesday, with the country's main share benchmarks surging amid signs of intensifying government support.
Chinese equity markets have fallen more than 20 percent from their peak in mid-June, when a year-long rally fuelled by cheap money shuddered to a halt as a crackdown on leveraged stock trading triggered panic selling.
On Monday China's main indexes had dropped a stomach-churning 7 percent before a sudden reversal. Tuesday began with another market tumble in early trade, before reversing course dramatically as the government scrambled to temper the sell-off.
"Chinese authorities wouldn't want to trigger a meltdown which would spook investors and we may see more market stabilising measures on the way," said Karine Hirn, Hong Kong-based partner of Swedish fund management group East Capital.
Beijing has already enacted a suite of measures that appear targeted at stabilising sentiment in a market dominated by individual retail investors prone to mood swings.
On the liquidity front, the central bank made multiple monetary easing moves last week and over the weekend, including cutting rates and reducing or eliminating banks' reserve ratios.