New Measures To Support Shanghai Bourse

September 2004 | Market Strategy

After watching the Shanghai Composite index slump to a 5¼-year low of 1,260 on September 13, the Chinese government stepped in to support the market by announcing a series of new reforms designed to channel billions of dollars worth of funds into the bourse. The key question is whether these will be enough to provide a sustained boost to sentiment amid continuing fears that Beijing will take further measures to cool its economy (see Further Cooling Measures Likely). The SCI began its long descent from a 2½-year high of 1,778 in early April, when the government announced new measures to

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