6 Jul 2015
Shanghai Composite pares gains
FXStreet (Mumbai) - The Shanghai Composite index pared gains due to weakness in Oil Equipment, Services & Distribution, Software & Computer Services and Technology.
Chinese stocks jumped after Beijing unleashed an unprecedented series of support measures over the weekend to avoid the full fledged crash in the equities. The Shanghai composite index jumped leaped more than 7%, before paring gains to end the day up 2.42%.
A surprise rate cut in the end of June relaxations in margin trading and other "stability measures" did little to calm investors . So China came out more announcements on Saturday –
-China's top brokerages pledged to collectively buy at least 120 billion yuan ($19.3 billion) of shares.
-The China Mutual Fund Association, said 25 fund companies also pledged on Saturday to buy shares. Another 69 fund firms said on Sunday they would do the same.
- 8 companies that had been approved to launch IPOs all announced they had suspended their plans.
It remains to be seen if the latest round of measures, manage to stabilize the Chinese equity markets.
Chinese stocks jumped after Beijing unleashed an unprecedented series of support measures over the weekend to avoid the full fledged crash in the equities. The Shanghai composite index jumped leaped more than 7%, before paring gains to end the day up 2.42%.
A surprise rate cut in the end of June relaxations in margin trading and other "stability measures" did little to calm investors . So China came out more announcements on Saturday –
-China's top brokerages pledged to collectively buy at least 120 billion yuan ($19.3 billion) of shares.
-The China Mutual Fund Association, said 25 fund companies also pledged on Saturday to buy shares. Another 69 fund firms said on Sunday they would do the same.
- 8 companies that had been approved to launch IPOs all announced they had suspended their plans.
It remains to be seen if the latest round of measures, manage to stabilize the Chinese equity markets.