China Seeking Foreigners to Tame Stock Market Swings
This article is for subscribers only.
For most emerging markets, the arrival of foreign equity investors is a harbinger of increased volatility. In China, opening up may be just what the country needs to tame the biggest stock swings in more than five years.
The $4.6 trillion market, where individuals account for about 80 percent of trading, has turned into the most volatile worldwide after Greece as local traders speculate on prospects for increased central bank stimulus. The benchmark index surged 2.9 percent today, erasing an early decline of 1.7 percent.