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At 2 p.m. in China, the Stock Market Rescue Suddenly Switches On

  • Government funds seen buying large-cap shares after declines
  • World War II victory parade adds pressure to support equities
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Why 2 p.m. Is China's Magic Hour

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Afternoons in the Chinese stock market have turned into a waiting game for the state-backed funds to arrive.

Over each of the past four days, China’s SSE 50 Index of large-capitalization companies has rebounded by an average 6.4 percent in late trading from session lows. The gauge surged 15 percent over the four-day period, its biggest rally since 2008 and twice the 8.1 percent gain by the Shanghai Composite Index. The SSE 50 climbed 0.9 percent at the close on Tuesday, erasing an earlier loss of 4.8 percent.