China's Stocks Stabilize With Yuan Amid Signs of Intervention
- Slump has wiped $2 trillion off value of nation’s equities
- Yuan hovers around key level as banks said to sell dollars
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China’s stocks clawed back losses in the last hour of trading and the yuan erased its drop after sinking through a key level, with unexpected comments on the currency from the central bank stoking speculation the authorities are stepping up efforts to stem a rout in the market.
The Shanghai Composite Index added 0.4 percent at the close after earlier plunging as much as 1.9 percent. The yuan climbed 0.3 percent after earlier sliding through 6.7 per dollar, where traders and analysts had expected intervention from the central bank. Banks and insurers led the equity rebound in Shanghai, which came after shares plumbed a new two-year low to approach levels last seen during panic selling in early 2016.