Chinese state-backed funds intervened to limit gains in the nation’s stock market on Monday, part of the government’s effort to restrain market swings before a key leadership reshuffle this month, according to people familiar with the matter.
The funds sold shares of large-cap companies, including banks and China United Network Communications Ltd., said the people, who asked not to be identified because the information is private. Before Monday, the funds had been buying stocks to support the market after S&P Global Ratings cut China’s sovereign credit grade, the people said. Their share purchases on Sept. 22 and the following week included Unicom and other large-cap companies.
