China State Funds Sought to Cushion Blow as Stocks Tumble
- Shanghai Composite sank 6.6 percent before paring some losses
- At least one big China bank seen selling dollars as yuan drops
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Chinese state-backed funds were active in selected stocks on Monday, people familiar with the matter said, seeking to cushion the blow from a sudden escalation in trade tensions with the U.S.
Among the funds’ targets were two large oil companies, the people said, asking not to be named discussing private information. PetroChina Co., which fell as much as 3.5 percent in Shanghai, pared losses in afternoon trading to close with a 0.9 percent decline. China Petroleum & Chemical Corp. also spiked briefly, though it ended the day down 4.2 percent. Industrial and Commercial Bank of China Ltd., the country’s largest lender, displayed a similar pattern.