Stimulus Measures Set to Boost Chinese Stock Market

With China’s benchmark index reaching its lowest level since 2009, market-boosting measures are set to be implemented. Chinese stocks have risen for two consecutive days due to the speculation, with the Shanghai Composite Index reaching 2033.19 at the close on September 24th. The government is set to introduce austerity measures if the index falls below the 2,000 mark. The decision was made after the index plunged 4.6 in the previous week, with concerns in the manufacturing sector and trade tensions with Japan being the contributing factors. The index is down 7.6 percent for the year due to concern that the government isn’t introducing stimulus policies quick enough to counteract the slowdown in the economy. So far this year, the CSRC has already cut trading costs buy 25 percent in an effort to boost investor returns.

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