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China Urges Investor Calm While Stopping Short of Market Rescue

  • Senior regulators seek to reassure investors after stock rout
  • Shanghai index gains 2.6%, with some state buying suspected
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China’s top financial officials moved to shore up investor confidence in the cstock market. Lucille Liu reports.(Source: Bloomberg)
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China’s top financial officials moved to shore up confidence in the country’s tumbling stock market, marshaling a rare show of coordinated verbal support as the government tries to prevent a $3 trillion equity rout from infecting the world’s second-largest economy.

The reassuring words from leaders of China’s central bank, securities watchdog, and banking and insurance regulator -- including promises of financial support for local businesses -- followed a bout of investor panic this week that sent the Shanghai Composite Index to a four-year low. The comments came just hours before Chinese data showed a deeper-than-estimated economic slowdown, and a day after Donald Trump took new steps to escalate his trade war with Beijing.