China to keep buying stocks amid market panic | Fin24
 
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China to keep buying stocks amid market panic

Jul 27 2015 18:54

Beijing - China will unleash more funds to stabilise its sharemarket, state media reported on Monday, after Shanghai stocks saw their biggest daily fall for more than eight years.

READ: China shares tumble in largest drop since 2007

State-backed China Securities Finance Corporation (CSFC) will continue to buy stocks, Xinhua reported, citing a spokesperson for the China Securities Regulatory Commission Zhang Xiaojun.

The move was made to dispel "rumors that the national margin trading service provider has backed off from stabilising the stock market," Xinhua said.

Chinese shares slumped more than eight percent on Monday, their biggest fall in a single session since February 2007, after weak economic data revived fears about the health of the world's second-largest economy.

Investors were also unsettled by reports the CSFC had started to return funds it borrowed from commercial banks to stabilise the stock market ahead of schedule, sparking fears Beijing's commitment to the market may be flagging.

Chinese authorities have unleashed an unprecedented government rescue plan to prop up equities in recent weeks that has included a police crackdown on short-selling and a six-month ban on big shareholders selling stocks.

china  |  international markets  |  equities
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