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By Bloomberg

China’s stocks fell to a two-week low as traders gauged government support for the equity market amid concern a slowing economy and weaker yuan will spur capital outflows.

The Shanghai Composite Index lost 1.4 percent to 3,743.77 at 9:59 a.m. local time, led by health-care and energy companies. Hong Kong’s Hang Seng Index lost 1.1 percent, taking its decline from its April 28 high to 19.5 percent, approaching the 20 percent decline that some traders consider the start of a bear market.

“Many investors are waiting until there are clear signs of stabilization in the market before making significant investments,” said Gerry Alfonso, a sales trader at Shenwan Hongyuan Group Co. in Shanghai. “There are no obvious positive triggers in the short term, either from a fundamental or policy angle.”

Speculation about the level of state intervention in Chinese stocks has increased since the securities regulator indicated late Friday that the state will reduce buying and data showed the richest traders were cashing out. The Shanghai gauge plunged 6.2 percent on Tuesday, before rallying 6.6 percent intraday after approaching the 3,500 level that’s been seen as a make-or-break level by traders.