The battle over the psychologically important threshold of 2,000 points considerably intensified as the benchmark Shanghai Composite Index dipped to a three-and-half-year low of 2,005 points on Monday morning.

A mild rebound in the afternoon might have temporarily saved domestic investors from panic selling, but it still looks more than likely that the Chinese stock market is yet to find a bottom given the economic weakness both at home and abroad.

Chinese policymakers should listen attentively to the increasingly loud cry for administrative measures to galvanize the stock market.