China’s 5.5% Stock Rally Fizzles in Blow to Market Rescue Effort
- Authorities cut stamp duty, margin ratios for leveraged trades
- Chinese stocks are among world’s worst performers in August
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Chinese stocks pared most of their early gains on Monday, showing once again that Beijing’s efforts to boost markets are falling flat in the face of economic worries.
After opening 5.5% higher on a slew of market support measures announced over the weekend, the CSI 300 Index of mainland stocks pared its advance to close just 1.2% higher. Foreign funds accelerated their selling through the day, poised to take this month’s outflows to the biggest on record. Authorities asked some mutual funds to avoid offloading equities on a net basis on Monday, people familiar with the matter said.