China-Listed Stocks Tumble In Worst Trading Day Since February: Here's What You Need To Know

Chinese equities tumbled on Wednesday as the Shanghai Composite index lost 2.3 percent, marking its worst trading day since February.

The Shanghai index has now lost more than 16 percent since the start of 2016 and roughly 30 percent over the past year. According to traders and analysts that The Wall Street Journal spoke to, the decline in China's stock market was attributed to short-term liquidity pressures, worries about earnings reports, a lack of confidence that recent gains can be sustained.

The Wall Street Journal added that there are worries that Chinese authorities may be "less inclined to introduce stimulus for the slowing economy." These concerns are consistent with China-based media sources that are reporting the People's Bank of China will take a "more prudent approach" in its easing measures this year.

"As the economy is yet to fully restore its strength, China will not shy away from using the ample tools at its disposal to bolster the economy," the Shanghai Daily reported. "But it will be more careful to prevent the easing from going too far."