Wall Street Journal (July 28)
When China’s roller-coaster stock market plunged downward in early July, “the Communist Party responded with every measure conceivable to fix the market.” This included the suspension of trading. “At one point in the middle of July 97% of all listed companies’ shares were not trading, 51% because management had sought a suspension and 46% because the share prices were down by the 10% daily limit.” On July 27, the Shanghai Composite took its biggest tumble ever, but this downswing “may be good news. Monday’s drop was due in large part to investor fears that the government is pulling back on market support. If Beijing has learned from its failure to prop up stock prices, that could mean the market finds a bottom.”
Tags: Bottom, China, Government, Listed, Market, Shanghai Composite, Shares, Stock market, Support, Suspension, Trading
