The zone determined by 3500 round level has been recognized as the last defense line in Shanghai Composite Index. Chinese stock market players are obsessed with round numbers and there are some rumors that Chinese government is too.
There were signs of government interventions on the market at least four times over the past six weeks, according to Bloomberg. The latest was yesterday, when Shanghai Composite fell almost slightly below 3600 points, decreasing about 4% and a session ended with a significant gain.
Analysts from Asia indicates that investors are focused on whether China will shore up the 3500 level. Inaction from the government may start a new sell-off on Chinese stock market.
There is interesting comment from Rabobank Group in Hong Kong. Michael Every said: "buy on the way up as government bids higher - then sell at the level they have flagged as a target. Rinse and repeat. The government carries the can".