Deals
China State Funds Start Selling in Warning Sign for Stock Rally
- PICC slumps 7.4% as national pension fund plans to cut holding
- Chinese stocks have added $1 trillion in value this week
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China acted to cool the speculative frenzy in its $9.5 trillion stock market, ending a euphoric eight-day surge that had fueled worries of a new bubble in the making.
Signs of Beijing’s unease over the rally’s speed emerged late Thursday, when a pair of government-owned funds announced plans to trim holdings of stocks that soared this week. On Friday the state-run China Economic Times warned about the dangers of a “crazy” bull market, while Caixin reported that regulators had asked mutual fund companies to cap the size of new products.