China Stock Bulls Hit Breaking Point as State Dials Back Support
- Shanghai Composite sinks 5.5% in deepest selloff since August
- Policy makers are rolling back measures to prop up equities
Can China's Economy Transition Without Crisis?
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For three weeks, China’s stock investors have kept their cool as the government dialed back an unprecedented campaign to prop up share prices. On Friday, they suddenly decided to head for the exits.
While the Shanghai Composite Index had barely flinched since Nov. 6 as authorities lifted a freeze on initial public offerings, raised margin requirements and scrapped an order for securities firms to hold net-long positions, news of a widening regulatory probe into the brokerage industry sparked a 5.5 percent tumble on Friday.