Beijing unveils dramatic steps to prop up Chinese market

09/19/2008 | Financial Times (free content)

As share prices on the Chinese stock market plunged 70% during the past year, Beijing reportedly decided to use government money to buy shares and will scrap the stamp duty on stock purchases. Central Huijin, a division of China's sovereign-wealth fund, will buy into financials and other listed companies. The moves are for propping up the market. "This announcement represents a significant policy initiative aimed at supporting China's leading financial institutions against the backdrop of turmoil in global markets," said Jing Ulrich of JPMorgan Chase Securities.

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