This was not supposed to happen. Everything was supposed to be calmer by now. After a hairy week or two earlier this month, the Chinese government’s efforts to settle the country’s stock markets were intended to produce a more serene environment. But on Monday China’s indices had one of their biggest ever one-day falls. Yesterday they struggled to stay flat after opening sharply down again.

That is not for want of trying on the part of the Chinese authorities. They have deployed well-tested measures, as well as some made in China. Selling pressure, and supply, have been stemmed by bans on sales by large shareholders, cancellation of initial public offerings and suspension of shares from trading. Buying has been augmented by government funds. To ensure a healthier market, margin financing has been reined in. None of this has worked. Investors are clearly still twitchy despite China’s protestations that it will stand behind markets.

They may have good reason. Even after all the recent share price falls, Shanghai and Shenzhen have returned 71 and 86 per cent over 12 months, respectively, leaving ample room for profit-taking. The Shanghai Composite index trades at 19 times historical earnings, which is not cheap enough to attract bargain hunters.