China is now blaming an unnamed international investment bank for the plunging Shanghai Composite, according to Caixin.Mouthpiece publication People’s Daily published a commentary today from Professor Shi Jianxun that accused an international bank of emailing investors and telling them to sell.
China’s Securities Regulatory Commission had already started a probe into market manipulation after the Shanghai Composite Index fell 5.16 per cent in one day. Shanghai is down 11 per cent over the past three weeks.
The article, titled “Where is China’s stock market heading in the next two decades?” said rumours of an impending stamp tax were a factor but did not enough justify the plunge. Shi also argues that big market fluctuations jeopardize social stability and harmony.
People’s Daily published another bullish article last week, according to Caixin, saying the stock market was the best place to absorb excess liquidity.
Got all that? China wants the market to be higher and is coming just short of direct intervention.
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