China state funds said to buy stocks after plunge escalated – Bloomberg

Omkar Godbole FXStreet Contributor

China's state funds are reportedly buying stocks in a bid to arrest the fall, sources familiar with the matter told Bloomberg on Tuesday.

The Shanghai Composite Index is nursing a 0.5% loss at press time. The benchmark index is down 14% from its February peak.

Stocks have entered correction territory with investors fearing an early unwinding of monetary stimulus by the Federal Reserve and China sucking out liquidity to curtail speculation in the property market.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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