Risky China stocks slide as market braces for 'survival of the fittest'

SHANGHAI -- Chinese stocks deemed risky by mainland exchanges have tumbled after the government vowed to set higher standards for companies to stay publicly listed, highlighting the delicate balancing act Beijing faces in reforming its capital markets without spooking investors.

ST, or "special treatment," stocks have come under the spotlight in recent weeks, after the government said it would strengthen oversight of listed companies. Exchanges in Shanghai and Shenzhen add the ST label to companies' stock codes to warn investors of certain financial risks, such as consecutive years of net losses, or violations of exchange rules. Those at risk of delisting will have an additional asterisk in front of them.