Posted on 07/04/2015 8:46:19 AM PDT by Rockitz
HONG KONG — Struggling to respond to precipitous declines on China’s stock markets over the last three weeks, the country’s biggest brokerage firms unveiled a government-endorsed plan on Saturday to buy shares starting on Monday, in a bid to stabilize the markets.
The government-controlled Securities Association of China said that 21 big brokerage firms had agreed to set up a fund worth at least 120 billion renminbi, or $19.4 billion, to buy shares in the largest, most stable companies, and would stop liquidating their own portfolios of shares. But some experts said that this might not be enough to stop the hemorrhaging of money from the stock market, particularly given that $105 billion in shares changed hands in Shanghai on Friday. ...
(Excerpt) Read more at nytimes.com ...
I read an article that said the China stock market is down $3 trillion dollars this year.
So they could use up that $19.4 billion in a couple of days, I would imagine. Then what?
Time to stem the bleeding before upper echelon chaos breaks out.
More at Zero Hedge...
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