Chinese shares rose early Monday after Beijing introduced new measures to stem a three-week selloff that has wiped out about US$2.4 trillion in value, the Wall Street Journal reported.
The market’s major indexes were cooling off after an initial spike at the open, the newspaper said. The shares are still down by more than a quarter from highs reached in June.
The People’s Bank of China has agreed to help investors to borrow to buy shares while regulators suspended new initial public offerings. Earlier, officials urged state-backed enterprises to invest in the stock market.
“The intervention of [the People’s Bank of China] is unprecedented,” the Journal quoted Capital Securities analyst Li Bin as saying. It shows that “the government is highly concerned about potential market stampede caused by margin calls”.
Jacky Zhang, an analyst at BOC International, said the new measures are aimed at stabilizing investor confidence in the short term.
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