Follow-up on Chinese stock market sell-off

Dow Jones reports that the biggest drop in China's benchmark stock index in a decade sent ripples through other Asian markets, in the latest sign of the emerging global importance of the country's economy and financial system. A day after the Shanghai Composite Index hit a new record high, it plunged 8.8% on Tuesday to 2771.79, on what analysts said were widespread efforts by investors to cash in on big gains and avoid any govt attempts to cool the markets. Tuesday's drop was the biggest in percentage terms since an 8.9% fall on Feb. 18, 1997 that was trigged by rumors that then paramount leader Deng Xiaoping had died, a day before he actually did. There were no new policies announced Tuesday, and few analysts see the one-day fall as a turning point for China's stock market. In fact, most signs suggest investors have returned from last week's Chinese New Year holidays keen to hold more stock.