China’s Newest Make-or-Break Level for Stocks Is Shanghai 3,500
An investor watches the electronic board at a stock exchange hall on Aug. 18, 2015 in Fuyang, China.
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In a Chinese stock market obsessed with round numbers, 3,500 has emerged as the latest make-or-break level for traders trying to gauge the staying power of state support.
Signs of government buying have appeared at that price on the Shanghai Composite Index at least four times over the past six weeks. The latest example came on Wednesday, when the gauge posted an intraday rally of 6.6 percent after falling to as low as 3,558.38.