Government buying stabilises Chinese share market
Intervention ends three-day slide and curb panic selling.
Gyrations in China’s sharemarket appear to have faded for the meantime as more government buying support emerged.
A three-day slide ended yesterday again with sharp gains in the last half-hour of trading.
The Shanghai Composite finished 3.4% up at 3789.16 after trading swung between gains and losses. The smaller Shenzhen Composite rose 4.1% to 2198.81.
The gains – which ranged across all sectors – offset an 11% drop over three days, starting last Friday.
But the market is still down more than a quarter from its June high.
About 400 stocks listed in Shanghai and Shenzhen reached their 10% upward daily limit.
The late surge was attributed to buying on behalf of a government agency that has pledged to support the market at times of volatility.
On Tuesday, the main sharemarket index moved in a 6% band before ending with a 1.7% loss.
On Monday, it dropped 8.5%, the biggest daily fall in more than eight years, as investors panicked and government buying support appeared absent.
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Nevil Gibson
Thu, 30 Jul 2015
Thu, 30 Jul 2015
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Government buying stabilises Chinese share market
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