China State Funds Prop Up Stocks
- Shanghai Composite Index sees huge intraday swing on Friday
- Shares had opened higher, then tumbled on news of tariff hike
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Chinese state-backed funds were active in buying domestic equities on Friday after they had slumped in the wake of the Trump administration imposing the biggest hit yet to China’s exports to the U.S.
State funds jumped in after the lunch break, when the Shanghai Composite Index dropped 0.4% after being up as much as 2.6% in the morning session, according to two people familiar with the matter. That helps explain the sharp V in intraday trading, one of them said, asking not to be named discussing private information.