China Crashes Most Since 2007 Amid "Panic Sentiment"; Over Half Stocks Suspended, PBOC Promises "Liquidity Support"

From Zero Hedge:

*CHINA TRADING HALTS LEAVE 54% OF ENTIRE STOCK MARKET FROZEN, CHINA'S SHANGHAI COMPOSITE INDEX FALLS 8%, MOST SINCE 2007
There's "panic sentiment" currently in our stock market with "unreasonable selling" pressure - China's stock regulator spokesman. PBOC TO KEEP SUPPORTING CHINA SEC. FINANCE FOR STABLE STK MKT

China appears to be trying to manage leverage...

• *CHINA RAISES MARGIN REQUIREMENT FOR CSI 500 INDEX FUTURES
• *SHANGHAI MARGIN DEBT FALLS 8.5%, BIGGEST ONE-DAY DROP ON RECORD

The problem is the collateral value is falling faster than the margin debt leaving "leverage" still at record highs...

While encouraging speculation...

http://www.zerohedge.com/news/2015-07-07/china-futures-plunge-8-over-half-stocks-suspended-margin-debt-crashes-most-record