Volatility is re-emerging in the world’s second-biggest stock market. Chinese shares plunged Wednesday, with a gauge of smaller companies tumbling 5.5 percent, as people familiar with the matter said the China Banking Regulatory Commission is discussing stricter curbs on wealth-management products. A measure of the Shanghai Composite Index’s short-term volatility doubled, after sinking to a two-year low on Monday. The market’s exaggerated response shows what’s at stake for China’s watchdogs as they attempt to reduce risk in the financial system while avoiding going too far and provoking another crash in the $6.1 ... (full story)