After Sudden Rout, China Stock Traders Question Beijing Put
- Large-cap CSI 300 index suffers biggest loss since June 2016
- Regulators are growing concerned about rising leverage: Citi
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What happened to the Beijing put?
That’s what investors in China are asking themselves after a gauge of large-cap stocks plunged 3 percent on Thursday, rattling a market that’s grown accustomed to state support when losses get extreme. While there were signs over the past week that the government was looking to cool gains in high-flying shares like Kweichow Moutai Co. -- along with concerns over rising corporate bond yields -- the severity of Thursday’s slump caught some traders off guard.