China stocks volatile after Beijing acts to avoid crash

By News on the Net CNN Money —— Bio and Archives July 6, 2015

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China stocks remained volatile on Monday, despite a series of dramatic steps by officials over the weekend designed to support markets.

After opening with a gain of roughly 7%, the benchmark Shanghai Composite closed 2.4% higher on Monday. The smaller Shenzhen Composite, which also started the day in positive territory, reversed course and ended 2.7% lower. The measures put forward by Beijing in the past few days include a commitment from brokerages to buy billions worth of stocks, and a de-facto suspension of new IPOs. In addition, the central bank has offered a new line of credit to support margin financing, a risky way to invest using borrowed money. More...