BEIJING: China’s 21 largest brokerage firms announced Saturday they would invest more than $19 billion in the country’s stock markets in order to curb its precipitous fall over the last three weeks. The brokers will spend at least 120 billion yuan ($19.3 billion) on so-called “blue chip” exchange traded funds (ETFs), the Securities Association of China said in a statement after an emergency meeting in Beijing. The group promised to act “firmly” to stabilise local markets, after a spate of official policy moves to stop the sell-off. The Shanghai stock market has plummeted by almost 30% over the past three weeks. On Friday the Shanghai Composite Index closed down 5.77% to end at 3,686.92 points. Experts fear it could turn into a full-brown crash introducing even more uncertainty into global markets as Europe teeters on the edge of a potential exit by Greece from the eurozone.
Published in The Express Tribune, July 5th, 2015.
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