China’s New Market Anomaly: Stocks Won’t Drop More Than 1% (1)

2017-04-20 09:38:49.891 GMT

By Bloomberg News

 

Still, some investors are convinced the government will act to prop up share prices. CSRC Chairman Liu Shiyu said last year that the state will intervene “decisively” if needed to bolster the market, while stability has been a key focus of policy makers in 2017 as the ruling Communist Party prepares for a twice-a-decade leadership reshuffle toward year-end.

 

Authorities favor a steady stock market because it helps companies fund investment and repay debt by issuing new shares, which could help boost economic growth, according to Yin Ming, a vice president at Baptized Capital in Shanghai. “The national team is behind it,” Yin said. “State funds will likely continue to be a market stabilizer.”