Main­land China’s volatile mar­ket shakes up in­vestors

The China Post - - BUSINESS INDEX & -

Main­land China’s volatile stock mar­ket is tak­ing share­hold­ers on a white- knuckle ride, threat­en­ing to drive out the small in­vestors Bei­jing hopes will help pay for re­forms of state in­dus­try.

Af­ter fall­ing 6.1 per­cent on Tues­day, the mar­ket bench­mark de­clined another 5 per­cent on Wed­nes­day be­fore re­bound­ing in the fi­nal min­utes of trad­ing to close up 1.2 per­cent.

Bei­jing’s multi­bil­lion- U. S.dol­lar in­ter­ven­tion over the past month helped to stop a slide in prices. But author­i­ties say they will avoid tak­ing ac­tion ev­ery day, which could al­low wide daily swings in a mar­ket filled with ru­mors and anx­i­ety.

Zhang Yang, a mar­ket strate­gist for Si­no­link Se­cu­ri­ties, said, “Maybe sharp volatil­ity is be­com­ing the new nor­mal.”

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