BEIJING – China's volatile stock market is taking shareholders on a white-knuckle ride, threatening to drive out the small investors Beijing hopes will help pay for reforms of state industry.
Continue Reading Below
After falling 6.1 percent on Tuesday, the market benchmark declined another 5 percent on Wednesday before rebounding in the final minutes of trading to close up 1.2 percent.
Beijing's multibillion-dollar intervention over the past month helped to stop a slide in prices. But authorities say they will avoid taking action every day, which could allow wide daily swings in a market filled with rumors and anxiety.
Zhang Yang, a market strategist for Sinolink Securities, said, "Maybe sharp volatility is becoming the new normal."