Chinese Whispers


The "national team" is buying in to support the index above the 3,000 level as the Chinese government needs a stable environment during the long weekend.

Nine Chinese brokerages have pledged additional funds worth over 30 billion yuan to buy shares, Reuters reported citing the China Securities Journal on Wednesday. This came on the back of news that major Chinese brokerages such as Guotai Junan Securities are stepping up their contribution to support the stock market Tuesday, according to filings on the Shanghai Stock Exchange website.

According to some analysts, it may have some sort of a psychological impact in terms of stabilizing the mentality of investors, but if we look at the figures, even if they contribute 25-30 billion yuan, the amount is still insignificant to the size of the stock market