Mainland investors rejected a pep talk last week from the chief securities regulator, sending the benchmark to a three-year low yesterday as concerns about the country's economy mounted.
In his latest effort to bail out the beleaguered market, China Securities Regulatory Commission (CSRC) chairman Guo Shuqing told a working conference on Friday that listed companies would be urged to increase cash dividends to investors to help bolster confidence.
But the benchmark indicator dropped 1.26 per cent yesterday, the lowest close since March, 2009, despite official newspapers giving Guo's positive remarks front-page treatment.
Hundreds of mainland equity investors also went online to criticise Guo for not protecting their interests.
Z-Ben Advisors research head Howhow Zhang said: '[Guo] might not have enough power to force the state-owned powerhouses to follow his advice ... Investors need not only a strong-minded reformist, but also an official who can enforce.'
Guo, a former China Construction Bank chairman and chief of the State Administration of Foreign Exchange, has ministerial rank, putting him on official par with dozens of top bosses at central government-owned enterprises.
But a CSRC chairman has no say in the operations of state-owned companies and whether they should increase returns to investors.