China's government intervened to boost the stock market Thursday, according to people familiar with the matter.
China wants the market to stabilize ahead of a Sept. 3 military parade celebrating the World War II victory over Japan, said the people, who asked not to be identified because the move wasn't publicly announced. The government bought blue-chip stocks, according to one of the people.
The Shanghai Composite Index swung from a loss of 0.7 percent to rally 5.3 percent in the last hour of trading, ending its steepest five-day rout since 1996. The China Securities Regulatory Commission didn't immediately respond to a faxed request for comment.
A gauge of 50-day volatility on the Shanghai Composite surged to its highest level since 1997 this week amid signs the government had pulled back from rescue measures to support the world's second-largest stock market. Officials previously armed state agency China Securities Finance Corp. with more than $ 400 billion to purchase shares.
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