IMF Said to Urge China to Exit Measures to Prop Up Stocks

The International Monetary Fund has urged China to eventually unwind measures taken to stem a stock sell-off that wiped out almost $4 trillion in market value, according to a person familiar with the matter.

The Washington-based fund told the Chinese government that while interventions in general are appropriate to prevent major disorder, prices should be allowed to settle through market forces, said the person, who is familiar with IMF discussions on the issue and asked not to be identified because the talks are private. Chinese officials assured the lender that the measures should be considered temporary, the person said.